Investors flee after second quarter gaming industry results

Jul 30, 2012 6:08 PM

Many gaming companies saw their share prices plummet as earnings for the period that ended on June 30 continue to fail to meet analysts’ and investors’ expectations.

The string began with last week’s report from Wynn Resorts Ltd. (WYNN) and continued with weak reports from such companies as Las Vegas Sands Corp. (LVS), Boyd Gaming Corp. (BYD), International Game Technology (IGT), and Penn National Gaming Inc. (PENN).

As a result of the earnings reports, gaming shares for the most part took a beating last week. Despite favorable reports out of Europe, a number of gaming company shares fell to or near their 52-week lows before improving somewhat on Friday.

IGT shares reached a low of $11.15 before a minor recovery while BYD dropped to $5.41, MGM to $9.23 and WYNN to $92. Also taking a major hit was Las Vegas Sands Corp. whose shares fell to $36.18 following its second quarter financial report.

Following two strong days of market activity, Thursday and Friday, some of the gaming companies showed minor improvements.