Melco Crown Entertainment
The 10-second takeaway
For the quarter ended March 31 (Q1), Melco Crown Entertainment beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Melco Crown Entertainment booked revenue of $1.14 billion. The nine analysts polled by S&P Capital IQ expected sales of $1.11 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.03 billion.
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 $0.24. The nine earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. Non-GAAP EPS of $0.24 for Q1 were 4.3% higher than the prior-year quarter's $0.23 per share. GAAP EPS of $0.10 for Q1 were 55% lower than the prior-year quarter's $0.22 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 28.6%, 40 basis points worse than the prior-year quarter. Operating margin was 13.7%, 10 basis points worse than the prior-year quarter. Net margin was 4.7%, 720 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.04 billion. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $4.51 billion. The average EPS estimate is $0.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,292 members out of 1,348 rating the stock outperform, and 56 members rating it underperform. Among 350 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 337 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 $24.40.
Looking for alternatives to Melco Crown Entertainment? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Melco Crown Entertainment to My Watchlist.