• It's Coming...

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

That’s a good stat for baseball but not so good when it comes to regional gaming operators missing estimates.

Estimates keep coming down yet regional gamers keep missing.  Q2 should be a rerun.  The following table details our EBITDA estimates.  Contact us if you would like to see our models.  

FOUR FOR FOUR! - H11

Note that we expect same-store EBITDA to fall for each of the four regional operators for the 2nd straight quarter.  With the exception of PENN, it should be 3 quarters in a row.  The economy is doing better and housing prices have improved.  What’s going?  We think oversupply and lack of demand are the problems.  As we illustrated in our 05/17/13 note “CHART DU JOUR: ADMITTING THE PROBLEM,’ the positive macro hasn’t overcome the long-term secular headwind of a declining slot customer base.

FOUR FOR FOUR! - B2