Jefferies Anticipates May Casino Revenues

This week in gaming, the Macau DICJ should report total casino revenues for the month of May, Jefferies reports. “We view this prospective incremental information as a critical indicator for the stocks of Macau casino operators, particularly for Las Vegas Sands Corp. LVS, MGM Resorts International MGM and Wynn Resorts Ltd. WYNN,” Jefferies writes. “We highlight that May has the strongest YoY comparison and also follows strong trends from February, March and April. That said, we believe the Street's expectations for the month suggest YoY growth of 40-45% (or sequential growth of at least 17%), which echoes the commentary on robust trends from various management teams during our meetings in Macau last week. “We note that the official release does not reflect property-specific data, nor does it indicate hold percentage or commission trends, but is a gross revenue result that provides a directional, qualitative data point for 2Q11 market trends.” Wynn Resorts closed Friday at $146.40; MGM Resorts International closed at $15.40; and Las Vegas Sands closed 41.38.