Welcome!

News Feed Item

The Zacks Analyst Blog Highlights: Caesars Entertainment, Caesars Acquisition, Century Casinos, Monarch Casino & Resort and Las Vegas Sands

CHICAGO, Aug. 19, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Caesars Entertainment Corporation (Nasdaq:CZR-Free Report), Caesars Acquisition Company (Nasdaq:CACQ-Free Report), Century Casinos Inc. (Nasdaq:CNTY-Free Report), Monarch Casino & Resort, Inc. (Nasdaq:MCRI-Free Report) and Las Vegas Sands Corp. (NYSE:LVS-Free Report).

Zacks Investment Research, Inc., www.zacks.com

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday's Analyst Blog:

Gambling Stocks in the News

In the past week, Caesars Entertainment Corporation (Nasdaq:CZR-Free Report) posted dismal second quarter results with both earnings and revenue missing the Zacks Consensus Estimate. It also entered into an agreement with bondholders to cut its indebtedness by $548.4 million.

Meanwhile, Caesars Acquisition Company (Nasdaq:CACQ-Free Report) that was formed in Feb 2013 to make an equity investment in Caesars Growth Partners, LLC (CGP LLC), a joint venture between Caesars Acquisition and subsidiaries of Caesars Entertainment, also posted second quarter results.

Century Casinos Inc. (Nasdaq:CNTY-Free Report) posted mixed second quarter results. Its earnings missed the Zacks Consensus Estimate while revenues beat the same. Meanwhile, Monarch Casino & Resort, Inc. (Nasdaq:MCRI-Free Report) completed the first phase of extensive casino redesign and upgraded its Monarch Casino Black Hawk per the plan approved in Apr 2013.

Further, Hong Kong has lowered its economic growth forecast for the year to 2% to 3% from its previous expectation of 3% to 4%. Hong Kong is located about 40 miles from Macau and this revised forecast has clouded the prospects of leading U.S.-based casino operators such as Las Vegas Sands Corp. (NYSE:LVS-Free Report) and others operating in the region. (Read last to last week developments: Gambling Stock Round up for Aug 11, 2014)

Recap of the Week's Important Stories:

1.    Caesars Entertainment Corporation posted adjusted loss per share of $2.31 in the second quarter of 2014, which compared unfavorably with the year-ago loss of $1.69 and also the Zacks Consensus Estimate of a loss of $1.24. The downside reflects higher interest expenses incurred by this debt ridden company. Moreover, persistent weakness in Atlantic City and regional markets added to the downside. Though total revenue of $2.19 billion was up 3% year over year, it missed the consensus mark of $2.21 billion by 1%.

In a separate development, the company entered into an agreement with bondholders that would cut its indebtedness by $548.4 million and interest expense by $34 million annually. Per the agreement, bondholders have agreed to sell Caesars' $89.4 million of 6.5% notes due 2016 and $66 million of its 5.75% debt due 2017. These steps are intended to get rid of the company's $20 billion of obligations.

Caesars has not been able to post profits for a very long time, failing to recover from its debt load since the recession. The company runs casinos across the U.S., primarily in Las Vegas and Atlantic City. Atlantic City, once East Coast's gambling hub, is currently facing stiff competition after gambling was legalized in neighboring states including Pennsylvania and New York. As a result, several casino operators are withdrawing themselves from the market. Moreover, the company's failure to acquire a gambling license in Macau has added to the woes.

2.    Casino asset and entertainment firm Caesars Acquisition Company posted second quarter earnings per share of 6 cents, down 25% year over year and missed the Zacks Consensus Estimate of 37 cents by 84%.

3.    Century Casinos posted second-quarter 2014 adjusted earnings of 1 cent per share that missed the Zacks Consensus Estimate of 6 cents by 83.3%. Further, earnings declined 93% from the year-ago figure of 15 cents per share. The significant downside reflects higher total operating costs and expenses and non-operating expenses.

However, net revenue increased 11% year over year to $31.6 million and also beat the Zacks Consensus Estimate of $31 million by 2%. The upside in revenues reflects 31% and 11% increase in revenues at Casinos Poland and Century Casino, Calgary, respectively. Adjusted EBITDA of $3.2 million was down 18% year over year.

4.    Monarch Casino & Resort, Inc.'s, subsidiary Monarch Casino Black Hawk has completed the first phase of extensive casino redesign and upgrade per the Planned Unit Development (PUD) master plan approved by the Black Hawk City Council in Apr 2013.. Now it includes an all-new granite-top stage bar, which has a 211-inch high-definition video wall. In Sep 2013, the company had introduced a new buffet as part of the redesigning plan.

Completion of the project would nearly double the casino space and will add a 22-story hotel tower with 507 guest rooms and suites, spa and pool facility, four restaurants, additional bars, a new parking structure and associated support facilities. Also, parking spaces will increase from approximately 500 to 1,550.

5.    Hong Kong's economic growth forecast for the year has been lowered to 2% to 3% from its previous expectation of 3% to 4% owing to the slowdown in China. Retail sales in Hong Kong have declined for five straight months through June owing to moderate economic growth in China.

Moreover, the country's anti-corruption campaign has curtailed tourists' spending on luxury items. Share price of Las Vegas Sands, MGM Resorts, WYNN Resorts and Melco Crown declined in response as Macau casino resorts rely on tourists from throughout China and nearby Asian countries.

Gambling revenue in Macau, the world's top casino destination, has been witnessing a downside lately.  The slowdown can be attributed to the fact that high-stake gamblers are curtailing spending amid a cooling Chinese economy. Further, the nationwide crackdown on corruption in China has compelled Macau officials to impose restrictions on VIP gamblers in order to stop billions of dollars from being siphoned off illegally from mainland China to Macau.

Given the current choppy environment, a few analysts have lowered their revenue forecasts for the year while lowering their target prices. However, they remain bullish over the long term.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on CZR - FREE

Get the full Report on CACQ - FREE

Get the full Report on CNTY - FREE

Get the full Report on MCRI - FREE

Get the full Report on LVS - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
910Telecom exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and exchanges.
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...