Las Vegas Sands (LVS) is one of the world’s most notable names in gambling. In addition to the famous Venetian Hotel in Las Vegas, the company owns properties in Macau, China, and its enigmatic CEO Sheldon Adelson always keeps LVS in the headlines.
Recently, Las Vegas Sands has struggled due to weak income from its Macau properties, which are responsible for about 60% of the company’s total income. Macau, the only place in China where gambling is legal, has been a traditional hotbed for casinos, but recent anticorruption regulations have led to tough crackdowns on VIP gamblers. June marked the 13th straight month of revenue decline, with a total reduction of 36% (also read 2 Casino Stocks to Double Down, 2 to Fold).
However, the past week or so has shown some promise for LVS. Reports last week that China was considering pulling back on its casino smoking ban saw share prices surge, although stocks returned to their previous positions the next day.
The uncertainty in Macau has had earnings estimate revisions pouring in, and they haven’t looked positive for LVS. In just the past 30 days, four negative revisions have been made for the company’s current quarter estimates, and seven negative revisions have been made for the remainder of the year.
Currently, LVS has a Zacks Rank #5 (Strong Sell), although that could move based on the response to today’s announcement. We have highlighted some of the key stats from this just released earnings report below:
Earnings: Las Vegas Sands reported a diluted EPS of $0.60, which fell just short of the Zacks Consensus Estimate of $0.61.
Revenue: LVS’s total Q2 revenue of $2.92 billion also fell slightly short of our consensus estimate, which was $2.96 billion.
Key Stats to Note: The Company will pay dividends of $0.65 a share, which is up over 30% on a year over year basis.
Stock Price: LVS share prices dropped about 1% this morning before flat lining at the closing bell. Following the earnings report, LVS stock is up nearly 5% in after-hours trading.
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