\nMacau continues to be a golden cash cow for Las Vegas Sands (LVS), MGM Resorts International (MGM), Wynn Resorts (WYNN) and other casinos in the world’s top casino gaming destination.
\n\tAnalysts forecast that gross gaming revenue for Macau this month had already set a new record Monday, with four playing days left in October.
\n\tRBC Capital Markets analyst John Kempf projects that gaming revenue for the first 27 days of the month totaled $4.1 billion, topping the previous monthly record $3.93 billion set in March.<\/p>\n
\tKempf cited renewed Chinese growth.
\n\t"China’s economy grew by 7.8% year over year in Q3, in line with expectations and ahead of the country’s 7.5% annual growth target. In addition, industrial production rose 10.2% year over year in September," Kempf said, as retail sales grew 13.3% in September.
\n\tMacau draws middle class "mass market" gamblers mostly from China and nearby Asian countries, and attracts high-roller "VIP" gamers from around the globe. China’s improving economy boosts the mass market take, the largest share of Macau’s revenue.
\n\tStern Agee said in a report Tuesday it expects Macau revenue will be about 15% higher than the March record, which would put the monthly total at about $4.52 billion. Wells Fargo projected gaming revenue was about 30% higher than the same month a year ago.
\n\tMacau is already well past the $40 billion a year level, and analysts have speculated it could be the first gaming region to top the $100 billion mark in a few years.
\n\tShares of Sands, the world’s largest casino company, eased less than 1% in morning trading in the stock market today.
\n\tLike MGM and Wynn, Sands benefits both from rapid growth in Macau and slower, steady growth in the U.S.
\n\tSands, which is on the proprietary IBD Leaderboard list of top-rated stocks, rose 53% from June 24 to Oct. 21 before consolidating.
\n\tMGM, No. 2 global casino by revenue, is slated to report third-quarter earnings results Thursday before the market opens. Consensus is for revenue to fall 7% to $2.42 billion, and a 3-cent per share loss, much improved from the post-recession 23-cent loss a year ago. MGM was down a bit Tuesday midday.
\n\tWynn and Hong Kong-based Melco Crown Entertainment (MPEL), which competes with the Las Vegas casinos in Macau, slid, as did highly rated Reno, Nev.-based Monarch Casino & Resort (MCRI), which operates the Atlantis casino.<\/p>\n