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Melco Crown (MPEL) Beats on Q3 Earnings, Misses Revenues

Melco Crown Entertainment LimitedMPEL operates casino gaming and entertainment resort facilities in Asia. In order to cash in on a fast growing Philippine economy and increased tourism, Melco Crown recently launched its long-awaited new integrated casino resort, City of Dreams Manila. It is a part of the company's plans to have casinos across Asia.

Meanwhile, Melco Crown earns a better part of its revenues from Macau, the only gambling destination in China. 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 remained almost stable. Meanwhile, MPEL has a poor history in earnings season. Melco Crown has missed earnings results in all of the last four quarters, making for an average negative surprise of 15.09%. Meanwhile, the company has posted three negative revenue surprises in 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 beats on adjusted earnings. Our consensus earnings estimate called for EPS of 10 cents per share, and the company reported adjusted earnings per share of 11 cents instead. Investors should note that these figures take out stock option expenses.

Revenues : MPEL reported revenues of $945.7 million. This missed our consensus estimate of $955 million.

Key Stats to Note : Adjusted Property EBITDA was $237.3 million, down 22% year over year due to lower contribution from the group-wide rolling chip segment and mass market table games segment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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