REVISED: Melco Crown Entertainment Limited Earnings: Tops Analysts’ Expectations

The Cheat Sheet

Melco Crown Entertainment Limited reported net income above Wall Street’s expectations for the fourth quarter. Melco Crown Entertainment is a holding company which, through its subsidiaries, develops, owns, and operates casino gaming and entertainment resort facilities focused on the Macau market.

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Melco Crown Entertainment Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Melco Crown Entertainment Limited rose to $107.5 million (20 cents per share) vs. $16.3 million (one cent per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Rose 30.3% to $1.01 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Melco Crown Entertainment Limited beat the mean analyst estimate of 17 cents per share. It beat the average revenue estimate of $963.6 million.

Quoting Management: Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, “I am pleased to report our results for the fourth quarter of 2011, completing a remarkable year for the Company where we delivered full year net revenue and EBITDA growth of 45% and 88%, respectively, demonstrating strong top line growth together with impressive operating leverage. Our strong results in the fourth quarter of 2011 further demonstrate our ability to build on the meaningful improvements made earlier in the year, while at the same time executing on a range of strategically important milestones.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 21 cents versus a mean estimate of net income of 22 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from 15 cents per share to 14 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from 42 cents a share to 51 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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