Losers: MGM, LVSWinner: Wynn
The 3 major Strip Casino operators recently reported their first quarter earnings, and here is our amateur stock analyst take. While it might not be totally accurate given the massive construction projects undertaken by all 3 companies, or the question mark surrounding Macau, it’s kind of interesting to see where your money is going.
MGM-Mirage fell short of expectations; EPS rose from 49 cents to 57 cents, but missed forecasts of 66 cents. Revenue is up to $1,930 million from $1,770 during the equivalent quarter last year.
Terry Lanni, CEO of MGM-Mirage has harsh words when placing blame on the NBA for earnings shortfalls:
"The gang-bangers and others who came for purposes other than attending the game, they weren't very good for Las Vegas," chief executive Terry Lanni told The Associated Press.
Instead of gambling, many people stayed in their hotel rooms, Lanni said.
Lanni said the weekend soured the company's support for bringing an NBA team to Las Vegas, a move under consideration by commissioner David Stern.
"Mr. Stern can keep his basketball franchises out of Las Vegas as far as I'm concerned," Lanni said.
The company also had lower-than-expected revenue from its Macau operations, as the other US operators in Asia have superior products at this time. Las Vegas Sands failed to meet projections as well, seemingly due to the incredible expenses associated with pending projects, totaling 7.6 billion dollars. Revenue is up, but EPS is down to 26 cents from 34 last year.
Wynn Reports reported the first quarterly profits since its inception, EPS coming in at 54 cents, from a 12 cent loss per share last year. This is also better than analyst’s expectation of around 50 cents a share. Revenue was up to $635 million from $277 million.
Another interesting performance benchmark is Average Daily Rate, or ADR. This is the measure of the room rate per day for the company’s hotel properties. MGM’s ADR was $169, vs. LVS’s $276, given the company’s higher-end market. Wynn Las Vegas came in at an even higher $310.
MGM Mirage 1Q Profit Rises 17 Percent
Expenses drag down LV Sands earnings
Wynn Resorts posts profit, shares jump
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