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Previewing Casino Earnings: 'Q2 Was Good For Gaming Companies'

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Previewing Casino Earnings: 'Q2 Was Good For Gaming Companies'
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Previewing the results of casinos, Barclays said the second-quarter was overall a good one for gaming companies. The firm said strength in Macau, solid results in Las Vegas and continued stability in regional gaming provided a solid backdrop for companies in its coverage universe.

Analyst Felicia Hendrix gave her views on the likely performances of companies versus the consensus expectations.

To Report Upside

  • Wynn Resorts, Limited (NASDAQ: WYNN)
  • Pinnacle Entertainment Inc (NASDAQ: PNK)
  • Penn National Gaming, Inc (NASDAQ: PENN)

Could Report In-Line Results

  • Boyd Gaming Corporation (NYSE: BYD)
  • MGM Resorts International (NYSE: MGM) on the strip

That said, the analyst believes better-than-expected Locals LV results could lead to upside to estimates at Boyd.

Could Report Below-Consensus Results In Macau

  • MGM Resorts in Macau
  • Las Vegas Sands Corp. (NYSE: LVS)

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Wynn Resorts

    Earnings Date: Tuesday
    Revenue/EBITDA Estimates: $1,010.8 million/$281.3 million versus expectations of $1,020.1 million/$281.2 million
    Focus On The Call: The ramp of Wynn Palace and sustainability of the VIP Trends

Las Vegas Sands

    Earnings Date: Wednesday
    Macau EBITDA Estimate: $579 million versus $600.5 million estimate
    Focus On The Call: Mass market share, flow through and progress on improving VIP exposures

The firm sees downside risk for the shares of Las Vegas, as they have outperformed the broader market since mid-May.

"A potential miss in 2Q has no impact on our LT thesis," the firm said. "LVS is a longer term investment in Macau for the patient investor."

MGM Resorts

    Earnings Date: Thursday

Barclays expects MGM Resorts to report at the low-end of the guidance at the Strip and miss consensus estimate in Macau. The firm thinks the company did not participate in Macau strength as much as its rivals, given that it has merely one property in the peninsula.

More importantly, the firm expects the third-quarter guidance to be in line with the consensus estimates.

Penn National

    Earnings Date: Thursday

Barclays stated that it expects upside, excluding the new Tunica properties. The firm expects the consensus for the third quarter to go higher, as contribution from Tunica that closed in May would be included.

Boyd Gaming

    Earnings Date: Thursday
    Focus On The Call: Continued integration of Aliante and Cannery

The firm expects Boyd Gaming to report in-line results. While noting that cost initiatives began to be implemented in the second half of 2017, the firm said operations would likely to continue to reflect solid flow through.

Pinnacle Entertainment

    Earnings Date: August 10
    Focus On The Call: Continued integration of the meadows, cost cutting and capital allocation

Barclays sees upside to estimates for Pinnacle Entertainment.

At The Time Of Writing

  • Boyd Gaming shares were up 1.47 percent at $26.24.
  • MGM Resorts was up a more modest 0.21 percent to $34.10.
  • Penn National stock was rallying 3.02 percent to $21.12.
  • Pinnacle Entertainment was jumping 2.29 percent at $19.65.
  • Las Vegas Sands was adding 0.88 percent to $62.91.
  • Wynn Resorts was soaring 3.45 percent to $138.77.

Latest Ratings for BYD

DateFirmActionFromTo
Oct 2017Stifel NicolausMaintainsHold
Oct 2017Morgan StanleyMaintainsEqual-Weight
Aug 2017BarclaysMaintainsEqual-Weight

View More Analyst Ratings for BYD
View the Latest Analyst Ratings

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