NEW YORK (TheStreet) -- The pressure is on for casino stocks ahead of fourth quarter earnings reports due out this week.
As Macau gaming revenue hit record levels in 2010 and the Las Vegas economy begins to show signs of recovery, Wall Street won't be satisfied with so-so
Casino stocks, for the most part, also witnessed significant jumps last year. In order to keep up this momentum, casinos must prove a turnaround is truly in place.
Here's a look at how casino stocks are expected to stack in the fourth quarter....
Las Vegas Sands
Singapore will be in focus when Las Vegas Sands (LVS) reports its fourth-quarter earnings on Thursday. Las Vegas Sands, which generates over 75% of its earnings from outside the U.S., has relied on the success of Macau. and then Singapore. to sustain profit amid the recession. Last week the CEO of Marina Bay Sands, its Singapore property, resigned unexpectedly after just a year and a half on the job. Tom Arasi will leave the company on Feb. 18, raising a red flag among investors. Shares of Las Vegas Sands have fallen nearly 10% since early January, but J.P. Morgan analyst Joseph Greff still expects solid results out of Marina Bay Sands. "We don't view Mr. Arasi's departure as having any negative read-through for fourth-quarter Singapore results. If the departure was results-related, he likely wouldn't be sticking around through next week," Greff wrote in a note following Arasi's resignation. There has also been some concern regarding Las Vegas Sands' market share in Macau, as its foothold in the region came in slightly below the company's average in December. At the end of 2010, Macau officials failed to approve Las Vegas Sands' land concession for what has been known as Sites 7 and 8 on the Cotai Strip. But, of course, the company still has sites 3, 5 and 6 on the Cotai Strip, which will surely carry momentum over the next several years, with analysts estimating the casino operator can add 6,000 rooms in Macau in the next two to three years. Analysts are calling for a profit of 39 cents a share on revenue of $2.07 billion. Looking ahead, Las Vegas Sands is poised to benefit from the upcoming Chinese New Year, which will kick off at the end of the week.
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