Melco Crown Entertainment Limited (MPEL) operates casino gaming and entertainment resort facilities in Asia. The company has two major casino based operations in Macau at City of Dreams and Altira Macau and non-casino based operations in Macau at Mocha Clubs. It also has a casino based operation in the Philippines, City of Dreams Manila that was opened in Feb 2015.
Meanwhile, Macau is the key operating region of Melco Crown. However, gambling revenues in Macau are currently slowing down due to anti-graft corruption drive undertaken by the Chinese government.
Investors should also note the recent earnings estimate revisions for MPEL, as the consensus estimate has been almost moving downwards. Meanwhile, MPEL has a weak history in earnings season. Melco Crown has missed earnings results in all the trailing four quarters, making for an average negative surprise of 17.05%. Meanwhile, the company has posted negative revenue surprise in three of the trailing four quarters.
Currently, MPEL has a Zacks Rank #3 (Hold) but that could change following Melco Crown’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MPEL misses on adjusted earnings. Our consensus earnings estimate called for EPS of 9 cents per share, and the company reported adjusted earnings per share of 8 cents instead.
Revenues: MPEL reported revenues of $916.8 million. This missed our consensus estimate of 1,007.0 million.
Key Stats to Note: Adjusted Property EBITDA was $204.9 million, down 35% year over year due to lower group-wide rolling chip volumes and rolling chip win rate and lower contribution from the mass market table games segment.
Stock Price: MPEL shares were down almost 2.3% ahead of the report.
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