Friday, August 3, 2012

Melco Crown Entertainment Beats Estimates on Top and Bottom Lines

Melco Crown Entertainment (Nasdaq: MPEL  ) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Melco Crown Entertainment beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.

Gross margins dropped, operating margins grew, net margins grew.

Revenue details
Melco Crown Entertainment recorded revenue of $1.01 billion. The five analysts polled by S&P Capital IQ anticipated a top line of $977.4 million. GAAP sales were 30% higher than the prior-year quarter's $773.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.20. The five earnings estimates compiled by S&P Capital IQ forecast $0.17 per share. GAAP EPS of $0.20 for Q4 were much higher than the prior-year quarter's $0.03 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.6%, 17,190 basis points worse than the prior-year quarter. Operating margin was 13.3%, 720 basis points better than the prior-year quarter. Net margin was 10.7%, 860 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $986.5 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $4.03 billion. The average EPS estimate is $0.54.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,295 members out of 1,348 rating the stock outperform, and 53 members rating it underperform. Among 356 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 341 give Melco Crown Entertainment a green thumbs-up, and 15 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 $15.89.

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