MGM MGM Resorts International

TAKING THE PULSE: For big U.S.-based casino operators, the name of the game still remains Las Vegas and convincing consumers who go there to crack open their wallets amid high unemployment. But expansion and Asia are becoming a bigger piece of the picture and a significant driver of top and bottom lines. Many of the biggest casino operators posted better results in the fourth quarter, helped by casino openings and strong revenue in the Chinese gambling enclave of Macau. Analysts expect more of the same in the first quarter.

 
  COMPANIES TO WATCH: 
 
  Penn National Gaming Inc. (PENN) - reports April 21 

Wall Street's Expectations: Analysts polled by Thomson Reuters most recently forecast earnings of 40 cents a share on $663 million in revenue. A year earlier, the company earned 34 cents and posted revenue of $592.3 million.

Key Issues: Penn, which operates U.S. horse-racing facilities and casinos mostly in the Midwest, South and on the East Coast, has posted better revenue of late, with 10 of its 15 gaming properties seeing an improved top line during the fourth quarter. Company executives, though, said in February that their outlook calls for a continuation of 2010 trends until they see a more meaningful recovery.

 
   MGM Resorts International (MGM) - reporting date TBD 

Wall Street's Expectations: Analysts forecast a loss of 19 cents a share and revenue of $1.51 billion. A year ago, MGM had a 22-cent loss, including a net 9-cent gain--and $1.46 billion in revenue.

Key Issues: MGM has posted continued losses in recent quarters as it has booked charges and revenue has fallen at most of its casinos amid persistently high unemployment. Though casino revenue declined in the fourth quarter, executives said they were encouraged by the level of business activity they had been seeing in early 2011. MGM earlier this week said it had reached an agreement with Macau mogul Pansy Ho to give it a majority stake in its Chinese joint venture after the venture's initial public offering.

 
   Las Vegas Sands Corp. (LVS) - reporting date TBD 

Wall Street's Expectations: Analysts see the company earning 44 cents a share on $2.14 billion in revenue. A year ago, Las Vegas Sands lost 4 cents a share after paying preferred dividends--but posted a 7-cent profit excluding items such as pre-opening costs--on $1.33 billion in revenue.

Key Issues: Las Vegas Sands, which gets most of its revenue from Asia, has swung itself to the black in recent quarters, and results recently have been boosted by its Marina Bay Sands resort in Singapore that opened in August. The company also has seen strong revenue growth and better margins in Macau. Moody's in February lifted its rating on the company for the third time since August, saying Las Vegas Sands has the ability and willingness to cut its debt this fiscal year.

 
  Wynn Resorts Ltd. (WYNN) - reports in April 

Wall Street's Expectations: Wall Street sees Wynn earning 72 cents a share on $1.14 billion in revenue. The company a year ago posted a 22-cent profit, including 4 cents of charges, while revenue was $908.9 million.

Key Issues: Wynn's recent results have been strong, helped by more growth in Macau and stronger gaming revenue in Las Vegas. J.P. Morgan analysts earlier this month increased their earnings and price targets on Wynn as well as Las Vegas Sands "on recent market-wide Macau Data" as well as a recent trip to Macau and Singapore.

 
   Boyd Gaming Corp. (BYD) - reports May 3 

Wall Street's Expectations: Analysts project a 1-cent profit on $569 million in revenue. A year earlier, Boyd posted a 10-cent profit and $398.4 million in revenue.

Key Issues: Geographically diverse Boyd, which is one of Las Vegas's oldest gambling companies, has seen results pressured of late as charges weighed on its bottom line, though the company's revenue has surged--helped by its half stake in the Borgata resort. As that Atlantic City mainstay goes, Boyd's top line is likely to go, too--the company's fourth-quarter revenue jumped 43%, but without Borgata, it would have declined 0.5%.

(The Thomson Reuters estimates and year-earlier results may not be comparable due to one-time items and other adjustments.)

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;

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