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Gambling Stock Roundup: Las Vegas Sands' Plan Cancellation, Q1 Earnings Releases

Zacks Equity Research

Last week has been pretty disappointing for gambling stocks, with the industry losing 4.3% compared with the S&P 500 Index’s 2.2% fall. The decline can be primarily attributed to the coronavirus pandemic.

Recap of Last Week’s Most Important Stories

Las Vegas Sands Cancels Japan Casino Plan

Las Vegas Sands Corp. LVS recently abandoned its pursuit of Integrated Resort (IR) development in Japan. The company had been negotiating with the Japanese regulator for more than a decade. The company intends to focus on other opportunities following the decision. 

Chairman and CEO Sheldon G. Adelson said, “I remain extremely bullish about the future of our company and its growth prospects.  We operate best-in-class properties in the leading markets in our industry and we are currently executing significant investment programs in both Macao and Singapore to create meaningful new growth from our existing portfolio.”

The company currently has a Zacks Rank #3 (Hold).

Melco Resorts & Entertainment Misses Q1 Earnings 

Melco Resorts & Entertainment Limited MLCO reported mixed first-quarter 2020 results, wherein the top line surpassed the Zacks Consensus Estimate but the bottom line missed the same.

The company reported adjusted loss per share of 72 cents, wider than the Zacks Consensus Estimate of loss of 59 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 28 cents.

Quarterly net revenues totaled $811.2 million, surpassing the consensus mark of $632 million by 28.4%. However, net revenues declined 41.4% year over year. The decline can primarily be attributed to the dismal performance in all gaming segments and non-gaming operations on account of the temporary casino closure in Macau.

The company currently carries a Zacks Rank #3.

Eldorado Resorts Beats on Q1 Earnings

Eldorado Resorts, Inc. ERI reported first-quarter 2020 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. However, both the metrics declined sharply year over year.

The Zacks Rank #3 company reported adjusted earnings per share of 11 cents, beating the consensus estimate of 9 cents. In the year-ago quarter, the company had reported adjusted earnings per share of 49 cents.

The company reported revenues of $473.1 million, missing the consensus mark of $554 million. Moreover, it also declined 25.6% year over year. On a same-store basis, revenues decreased 17.5% year over year. Results in the quarter hurt by dismal performance of Midwest, South, East and Central segments.

Caesars Entertainment Q1 Earnings & Revenues Miss

Caesars Entertainment CZR reported first-quarter 2020 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. The company reported adjusted loss per share of 36 cents, wider than the Zacks Consensus Estimate of loss of 17 cents. In the prior-year quarter, the company had reported adjusted loss of 32 cents. The company reported revenues of $1,828 million, missing the consensus mark of $1,992 million. Moreover, it also declined 13.6% year over year. Results in the quarter were impacted by the coronavirus-induced shutdowns.

The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price Performance 

The following table shows the price movement of the major gambling stocks in the last week and the last six months:  

In the past five trading sessions, shares of PlayAGS, Inc. AGS and Boyd Gaming Corporation BYD have lost the most.

Moreover, shares of PlayAGS have lost the most in the past six months.

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Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report
 
Caesars Entertainment Corporation (CZR) : Free Stock Analysis Report
 
Eldorado Resorts, Inc. (ERI) : Free Stock Analysis Report
 
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
 
Melco Resorts Entertainment Limited (MLCO) : Free Stock Analysis Report
 
PlayAGS, Inc. (AGS) : Free Stock Analysis Report
 
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