NEW YORK ( TheStreet) - Casino stocks are in the red on downgrades and a weak recovery in the Las Vegas locals market.
Las Vegas Sands (LVS) is falling 4.3% to $49.89, after UBS cut its rating to neutral from buy. While the firm said it still views Sands as a solid long-term bet, it would wait for a more attractive entry point.
Nevada reported on Wednesday a 0.7% uptick in September gaming revenues in the state to $917.9 million, while the Las Vegas Strip experienced a 2.8% jump to $520.6 million.
The continued recovery in Las Vegas sent shares of MGM Resorts (MGM) advancing 2.7% to $13.35 in morning trading.But the recovery in the Las Vegas locals market remains non-existent, as gaming revenue slipped 0.3% to $174.2 million. As a result, shares of Boyd Gaming, which operates a large chunk of its casinos in the locals market, are tumbling 4% to $9.95. Slot machine maker International Game Technologies (IGT) is dropping 2.9% to $15.85 after reporting fourth-quarter results that missed estimates and issued a disappointing outlook. During the quarter the company earned $19.9 million, or 7 cents a share, compared with a loss of $28,6 million, or 10 cents a share, in the year-ago period. Excluding one-time items IGT earned 18 cents a share, a penny shy of forecasts. Revenue sunk 3% to $496 million.
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