After wild ride, stocks of casino companies up

Gaming stocks on Friday recovered some of their value that was lost the previous day when both Nevada and Atlantic City reported disappointing monthly gaming revenues, panicking an already jittery investment community.

Wynn Resorts Ltd. took shareholders on a wild ride Friday, a day after the company surprised the market by revealing preliminary second-quarter earnings and telling Wall Street it wanted to buy back $500 million worth of its stock.

Analysts weighed in on Wynn’s announcement before the markets opened Friday, saying they were disappointed by the company’s Las Vegas performance but encouraged by the casino operator’s prospects in Macau.

"This was clearly a strategic move in response to the softness in the company’s share price," Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski told investors, saying Wynn’s shares had fallen 26 percent in the past three weeks.

"We believe the company is trying to illustrate to investors that it is flourishing in Macau despite the large increase in supply, while Las Vegas is holding up despite the perceived notion that it is collapsing," Wieczynski said.

More than 9.5 million shares of Wynn Resorts were traded Friday on the Nasdaq National Market, almost five times the average daily volume, with the stock price closing at $78.12, up $8.20, or 11.72 percent. There was a more than $7.70 swing for Wynn Resorts shares Friday between the company’s high and low prices.

On Thursday, Wynn Resorts shares fell to their lowest price since 2006.

Gaming stocks fell to historical lows on Thursday after Nevada said May’s gaming revenue decline of 15.2 percent was the highest percentage decrease since the state began keeping monthly statistics in 1984. Strip gaming revenues, the barometer of the gaming industry’s financial health, fell 16.4 percent, compared to revenues in May 2007.

Later Thursday, Atlantic City said gaming revenues fell 11 percent in June.

The sagging national economy has hampered the gaming industry with customers either not traveling to casino destinations or spending less when they do make the trip.

Wynn Resorts, which has had its stock price fall 37 percent in the last 12 months, said its Macau casino was flourishing.

"We believe Wynn, which caters to the affluent customer with greater disposable consumer spending, should be somewhat insulated in the event of a further downturn in the economy (and Las Vegas)," Deutsche Bank gaming analyst Andrew Zarnett said in a note to investors. "However, we do caution that they are not entirely immune to a deceleration in the economy and a reduction in consumer spending."

Other gaming analysts said Wynn’s pre-earnings announcement was done to ease nervous investors.

"Although management’s indications of confidence in the stock near term and the strong Macau results are encouraging, we believe the market remains broadly conservative on casino stocks," Oppenheimer gaming analyst David Katz said.

Wynn Resorts’ price-per-share ride Friday brought along other casino operators, too.

Shares of Las Vegas Sands Corp. rose 8 cents, or 0.24 percent, to close at $34.09. MGM Mirage closed at $24.55, up $1.41 or 6.09 percent.

Boyd Gaming Corp. closed at $9.06, down 22 cents or 2.37 percent. Penn National Gaming was down $2.59, or 9.57 percent, to close at $24.47.

Slot machine makers were mixed. International Game Technology closed at $23.89, up 23 cents or 0.97 percent, while Bally Technologies closed at $26.50, down $1.18, or 4.26 percent, also on the NYSE.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

ad-high_impact_4
Business
Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
Star Wars VR Comes to Las Vegas
Sneak peak at the new "Star Wars: Secrets of the Empire" VR experience at the Grand Canal Shoppes.
Elaine Wynn continues her fight to change Wynn Resorts board
Elaine Wynn, the largest shareholder of Wynn Resorts Ltd., is seeking to kick a friend of her ex-husband Steve Wynn off the company’s board of directors. (Todd Prince/Las Vegas Review-Journal)
Zillow is getting into house flipping in Las Vegas
Las Vegas Review-Journal real estate reporter Eli Segall says flipping houses has waned in popularity after the housing bubble burst.
Ellis Island Buys Mt. Charleston Lodge
Ellis Island, which operates a casino, brewery and hotel just off the Strip, purchased the Mt. Charleston Lodge in early April.
Casinos to be penalized for allowing drug-impaired customers to gamble
Nevada Gaming Commission Chairman Tony Alamo talks about an amendment making casinos subject to the same disciplinary standards of preventing people to gamble if impaired by drugs as they are for letting them play while intoxicated by alcohol.
Terrible Herbst to open large travel center in Southern Nevada
The 50,000-square-foot commercial travel center will include 96 fuel pumps and the third White Castle restaurant in Southern Nevada. Wade Tyler Millward reports.
Art Bell’s Top 10 Shows
A selection of radio host Art Bell’s most popular shows.
Hooters owner talks about room upgrades at his hotel-casino
George Ruff, founder and senior principal of Trinity Hotel Investors L.L.C., owner of Hooters Hotel and Casino in Las Vegas, talks about recent room upgrades at the hotel. K.M. Cannon/Las Vegas Review-Journal
Passengers Discuss Allegiant Air
Allegiant Air passengers voice their views on the airline at McCarran International Airport on April 16, 2018. (Bailey Schulz/Las Vegas Review-Journal)
Longtime Las Vegas attorney John Momot dies at age 74
Criminal defense attorney John Momot, who represented mob figures and even played himself in the movie “Casino,” has died.
TOP NEWS
News Headlines
Home Front Page Footer Listing
Circular
You May Like

You May Like