Casino Stock Winners: Macau Revenue Surges
(Macau gaming revenue article updated with stock movement.)
NEW YORK (
) -- Macau gaming revenue surged 42% to $2.2 billion, sending casino stocks rallying in morning trading.
By market share:
SJM
held 32.1% of the revenue,
Las Vegas Sands
(LVS) - Get Report
14.8%,
Melco Crown Entertainment
(MPEL)
14.7%,
Wynn Resorts
(WYNN) - Get Report
17%,
MGM Resorts
(MGM) - Get Report
11.2% and
Galaxy
10.2%.
Notable is Las Vegas Sands' market-share decline from about 18% in October, which was primarily driven by lower-than-expected table hold, J.P. Morgan analyst Joseph Greff, said.
Nonetheless, shares of Sands are advancing 2.3% to $51.21 in mid-morning trading.
Wynn, on the other hand, climbed from a 13.8% share in October, which was driven by a combination of high table hold, as well as strong volume. "We believe the strength mitigates market concern on the potential negative impact of VIP commission competition," Greff wrote in a note.
Wynn's market-share gain is making it the biggest gainer in the sector, with shares rising 4.2% to $105.38 in morning trading.
MGM is up 1.7% to $12.43, while Melco is increasing 3.7% to $6.19.
Looking ahead, Wells Fargo analyst Carlo Santarelli is forecasting a 38.6% jump in Macau gaming revenue in December, while Greff predicts a 48% spike.
--Written by Jeanine Poggi in New York.
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