Wynn Resorts Limited (WYNN) today reported third-quarter earnings of 28 cents per share. Adjusted earnings were 33 cents. The results are ahead of the Zacks Consensus Estimate of 14 cents. The company had earned 49 cents (adjusted earnings of 62 cents) in the year-ago quarter. Net revenues were $773.1 million compared to $769.2 million in the prior-year period. Results were driven by the opening of Encore at Wynn Las Vegas in Dec. 2008. However, due to a challenging economic environment, consumers continued to curb their gambling. Casino revenues in Las Vegas were flat year-over-year, while non-casino revenues increased 18% from the prior-year period, driven primarily by higher hotel and food and beverage revenues from Encore. Though hotel revenues were up as a result of the addition of 2,034 suites at Encore, we note that average daily rate, occupancy levels and revenue per available room (RevPAR) ...

Avnet, Inc. (AVT) recently announced that it has acquired a controlling interest in Vanda Group from Hutchinson Whampoa Limited in a strategic move to expand its presence and customer base across China. Vanda Group will operate as an Avnet company while maintaining its current operations, management team and the Vanda brand. Vanda Group is a leading IT solutions and services provider covering major cities in China, Hong Kong and Macau, and has been around 27 years. Vanda Group provides systems integration services and solutions incorporating hardware and software from major suppliers including IBM (IBM), Lenovo, Cisco (CSCO), Sun (JAVA), Nokia (NOK) and Oracle (ORCL). The company serves clients from diverse industries including major banks, financial institutions, telecommunications companies, utilities and government departments. Vanda Group generated revenues of approximately $50 million in 2008 and employs more than 600 people. The transaction will ...

Las Vegas Sands Corporation (LVS) is planning for a Hong Kong initial public offering (IPO) for its Macau assets next month. The company intends to raise up to $2.5 billion through the IPO. The offering is intended to complete in about four weeks after receiving regulatory approval for offering and listing. In September, Las Vegas announced the infusion of up to $600 million of capital through the sale of exchangeable bonds to strengthen up its balance sheet. The bonds will be compulsorily exchanged into common stock of its Macau unit after the unit's pending IPO on the Hong Kong Stock Exchange. Rival company Wynn Resorts (WYNN) held its IPO for its Macau assets earlier in October. Wynn Macau has experienced a strong debut in the Hong Kong stock exchange. Wynn sold 1.25 billion shares or a 25% stake in its Macau business, which represented Hong ...

On Monday, Fitch Ratings raised its outlook for Wynn Resorts Ltd. (WYNN) to positive from stable subsequent to the completion of the company’s Hong Kong initial public offering (IPO) for its Macau unit. The ratings also include an improved operating outlook following the relaxation of travel restrictions.  Through the Hong Kong IPO, Wynn sold 1.25 billion shares or a 25% stake in its Macau business, which represented Hong Kong's second-biggest haul of the year.  Macau, a former Portuguese colony, is one of the world’s biggest gambling markets. Though the economic slowdown has negatively impacted the revenues of casino operators in the last few quarters, we note that Macau has been posting record revenues. Recently, visa restrictions had been lessened by Beijing to allow mainland tourists to visit Macau once a month rather than twice a year.  In 2008, Macau generated HK$105.6 billion ($13.5 billion) of ...

For Immediate Release

Chicago, IL – October 14, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Las Vegas Sands (LVS), Wynn Resorts Ltd. (WYNN), MGM Mirage (MGM), Advance Auto Parts (AAP) and O’Reilly Automotive (ORLY).

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Here are highlights from Tuesday’s Analyst Blog:

Macau Casino Growth Threatened?

The explosive growth of the casino industry in Macau may be threatened as the government of Macau − the Chinese gambling Mecca − is considering ways to impose restrictions on age, number of tables and locations of casinos.

Yesterday, government officials of

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The explosive growth of the casino industry in Macau may be threatened as the government of Macau − the Chinese gambling Mecca − is considering ways to impose restrictions on age, number of tables and locations of casinos. Yesterday, government officials of Macau met with six major casino operators including Las Vegas Sands (LVS) and Wynn Resorts Ltd. (WYNN) and a casino jointly operated by MGM Mirage (MGM) and local businesswoman/tycoon Pansy Ho, concluding that limitless expansion of the Macau gambling sector may be harmful to the society. Significant expansion of the gambling business in Macau has encouraged corruption, addiction and prostitution in that area. The government is considering regulations like raising the entry age limit for casinos to 21 years from 18 years, limiting the number of tables per casino and modifying zoning laws to compel slot machine halls away from residential areas ...

• Johnson & Johnson (NYSE:JNJ) beat estimates with third quarter earnings of $1.20 a share, seven cents better than expected on revenues of $15.08 billion, below estimates of $15.22 billion. The company said it now sees 2009 earnings of $4.54 to $4.59 a share, compared with its previous guidance of $4.45 to $4.55 a share

• UBS (NYSE:UBS) initiated coverage of VF Corp (NYSE:VFC) with a "buy" rating

• Pier 1 Imports (NYSE:PIR) reported a 9.9% gain in September same-store-sales, versus last year's 11.7% decline. The company expects inventory levels will peak at the end of the quarter at about $350 million

• According to the WSJ, Macau may draft rules within the next two months to impose age and table limits on casinos there

• AIG International (NYSE:AIG) agreed to sell its Taiwan life insurance unit to a Hong Kong investment group for $2.15 billion

Zacks Investment Research

Casinos Returning to Blue Chip Status

It’s been no secret that we’ve been bullish on the casino sector for some time. From Doubling down on Casinos and Bank Pullback Exposes Casino Opportunities in April, there has been a lot of potential.

Last week we asked if the casino sector had gotten too hot. And for many, the increase would suggest that. But as we discussed in “Are Casino Stocks a Gamble Right Now?,” just by looking at the prices from last year, we still have a ways to go.

So far this month we’ve seen the big-three casino operators charge ahead. Wynn Resorts (Nasdaq: WYNN) added 29%; Las Vegas Sands (NYSE: LVS) added 30% and MGM Mirage (NYSE: MGM) charged ahead with a 53% gain.

But there’s been another piece of

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Wynn Resorts (WYNN) is planning to raise up to $1.6 billion in its Hong Kong initial public offering (IPO) for its Macau unit, which represents an increase from $1.0 billion as previously intended. Wynn intends to offer 1.25 billion shares, representing 25% of the equity in the company's Macau operations. The price range of the offer is HK$8.52–$10.08 per share or US $1.10–$1.30. JP Morgan (JPM), UBS AG (UBS) and Morgan Stanley have been chosen to handle this Hong Kong listing. Wynn Encore Macau, the company’s second resort in Macau, is scheduled to open in the first half of 2010. The company has budgeted around $650 million for the construction of this resort and so far has incurred about half of that construction cost. Las Vegas Sands (LVS), Wynn’s rival, is also planning an IPO of its Macau assets in late November ...

• Dell (NASDAQ:DELL) revealed plans to acquire Perot Systems (NYSE:PER) –founded my former U.S. Presidential candidate, Henry Ross Perot- for about $3.9 billion, or $30 per share in efforts to expand beyond its core computer business to include computer-services consulting. • Wynn Resorts (NASDAQ:WYNN) has responded to positive reactions to its plans for an initial public offering in Hong Kong of its Macau casino operations, increasing the size of proceeds to about $1.6 billion from $1 billion of a few weeks earlier. • Credit Suisse (NYSE:CS) lifted its rating on Novellus Systems (NASDAQ:NVLS) to "outperform" from "neutral" with a price target of $29, up from $23. • Lennar Corp (NYSE:LEN) reported a 3rd quarter loss of 97 cents, including 76 cents in charges, versus estimates of a $0.48 cent loss, compared with a 56 cent loss last year. • Synnex Corp (NYSE:SNX) is scheduled to report earnings today, with an ...