Melco Crown Entertainment
The 10-second takeaway
For the quarter ended June 30 (Q2), Melco Crown Entertainment missed estimates on revenues and earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins dropped, and net margins improved.
Melco Crown Entertainment recorded revenue of $938.5 million. The six analysts polled by S&P Capital IQ expected to see revenue of $979.8 million on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $960.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.16. The seven earnings estimates compiled by S&P Capital IQ forecast $0.17 per share. GAAP EPS of $0.15 for Q2 were 25% higher than the prior-year quarter's $0.12 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.0%, 100 basis points worse than the prior-year quarter. Operating margin was 11.1%, 220 basis points worse than the prior-year quarter. Net margin was 8.8%, 190 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $973.4 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $4.01 billion. The average EPS estimate is $0.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,304 members out of 1,354 rating the stock outperform, and 50 members rating it underperform. Among 307 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 294 give Melco Crown Entertainment a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Melco Crown Entertainment is outperform, with an average price target of $16.42.
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