Mediaboss Marketing

Posted: Apr. 30, 2012 | 3:47 p.m. Updated: May 1, 2012 | 9:18 a.m.

It's early in the quarterly earnings season, but initial reports have given a boost to the gaming sector.

For the fourth consecutive month, gaming stocks - on a whole - gained in value, according to Las Vegas-based financial consultant Applied Analysis, which charts the average daily stock prices for eight casino operators and four gaming equipment providers for its monthly Gaming Index.

Gaming operators posted mixed results; shares of Caesars Entertainment Corp. traded up more than 15 percent on an average daily basis during the month while shares of Ameristar Casinos took the largest tumble, off 7 percent in April.

All four gaming equipment makers had increased stock value in April, led by WMS Industries, which saw its average daily share price climb almost 7 percent.

Applied Analysis principal Brian Gordon said in a report to the firm's clients that positive first-quarter earnings reports suggest that market fundamentals are improving and investor expectations are on an upswing.

Last week, Las Vegas Sands Corp. told investors the company had net revenues of $2.76 billion and cash flow of more than $1 billion in the first quarter. Roughly 83 percent of the company's revenues came from its holdings in Macau and Singapore.

Meanwhile, Boyd Gaming Corp. and International Game Technology also released positive quarterly earnings.

"Strong growth in relatively new markets proved positive for the industry while demand for slot machines appears to be resuming," Gordon said.

The index, which is based on some 300 different market variables including average daily stock price, gained 8.24 points to reach 497.24.

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Gaming Stocks Gain For Fourth Straight Month