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Las Vegas Sands Continues to Impress

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Las Vegas Sands (NYSE: LVS  ) seems to have hit the jackpot this time. The casino biggie recently reported its first-quarter results and delivered a set of spectacular numbers, posting impressive growth in its top and bottom lines across all regions.

In fact, Las Vegas Sands seems to have set a new record as it reported one of the highest ever quarterly adjusted property earnings before interest, tax, depreciation, and amortization in the casino industry -- a whopping $1.07 billion!

Let's take a closer look at the quarter.

Encouraging numbers
Revenue increased to $2.76 billion, a 31% boost over the prior-year period. Net income was $499 million, a robust increase of around 72% last year. Excluding special items, earnings of $0.70 a share handily beat analyst estimates of $0.60.

It's hard to put my finger on one single factor that helped growth, simply because there were meaningful contributions from Sands' operations all over -- in Las Vegas, Singapore, and Macau. Casinos generated 82% of the company's revenue, while sales from hotels, restaurants, theaters, and other retail facilities in its resorts provided accounted for the rest. Casino revenue in itself increased by 36%, with the help of a better win percentage and a higher number of gamblers.

The company has three major casino resorts in Macau (excluding the one that just opened) -- Venetian Macau, Sands Macau, and the Four Seasons Macau. Together, these properties generated more than half of the company's overall sales and grew at a 25% rate over last year.

The company's performance in Singapore, where it owns just one casino-resort -- the Marina Bay Sands -- was even more impressive, as the company generated 45% more in sales than last year, helped by a healthy increase in casino revenue and a 98% occupancy rate at the resort.

And that's not all. The home market displayed an encouraging trend, as the company's properties in Las Vegas put up a good show as well. Although this region contributes only 14% to Sands' total sales, a 91% increase in casino revenue certainly deserves to be mentioned. The fact that this trend overrides the slow economic recovery in the U.S. should spell good times ahead for the company.

The Foolish outlook
Sands opened up its much-awaited $5 billion property, the Sands Cotai Central in Macau, early in April, and it's expected to fetch a bundle. Macau obviously features high on CEO Sheldon Adelson's priority list, as he outlined plans to build another 3,600-room hotel in the region. Having an insatiable appetite for growth, Adelson has set his eyes on Europe as well, as he targets Spain for his massive Eurovegas venture. The company seems to be growing faster than any of its peers, including MGM Resorts (NYSE: MGM  ) and Wynn Resorts (Nasdaq: WYNN  ) , with a much-needed competitive edge.

Las Vegas Sands sure seems like the stock to look out for. With the money flowing in from Asia, followed by an uptrend in the U.S. and massive expansion plans for Europe, this company looks firmly set on the growth path. I love Las Vegas Sands, and if you feel the same, make sure you add this company to your Watchlist to stay updated on all its Foolish analysis. It's free!

Las Vegas Sands sure looks good for the long run, but it's not the only one. Learn more about three smart long-term stock plays in the Fool's latest special report. It's yours for the taking and is absolutely free, so don't miss out -- read it today.

Fool contributor Navjot Kaur owns no shares of any of the companies mentioned in this article. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (9) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 08, 2012, at 6:25 PM, cbotrader wrote:

    I do wish you might have addressed its decline since the earnings announcement...

    There is another side to the numbers which you did not elaborate on.

  • Report this Comment On May 08, 2012, at 6:52 PM, cobraman69 wrote:

    Yes, I agree cbotrader, why such a large decline after posting numbers like that? LVS is down $10/share since it's high last week. What is the other side to the numbers that we're not seeing?

  • Report this Comment On May 08, 2012, at 7:23 PM, infogather10 wrote:

    LVS Las Vegas Sands is THE premiere Integrated Resort company and has as it's leader a visionary who has made LVS stand apart from the "rest" of the IRs. WYNN just showed it's true numbers and it's somewhat bleak future, with no properties coming online for realistically near 4 years into the future. Las Vegas Sands LVS possesses a duopoly in Singapore where they are more than printing money there. LVS also just opened yet another Macau casino and 2000 hotel rooms and will carry on a graduated opening of at least another casino as well as an additional 3800 hotel rooms, and is about to annouce a huge project about to begin in Barcelona, Spain, the vacation jewel of Europe. THERE ARE NO HIDDEN NUMBERS WITH LVS.....SIMPLY GREAT ONES AND THEY WILL CONTINUE TO GROW WITH NEW PROPERTIES AND ADDTIONAL EPS AND REVENUE, WHEN OTHER PROPERTIES ARE LAYING STAGNANT GROPING AT FILLING IN THE COTAI SWAMP FOR THEIR NEXT PROPERTY AND MGM LAYING THEIR CHIPS UPON ONLINE GAMBLING.....I THINK i WILL STICK WITH THE BEST....

  • Report this Comment On May 08, 2012, at 7:30 PM, infogather10 wrote:

    May I also add that LVS beat eps street estimates by .10, posting .70 cents a share beating the street concensus of .60 cents. LVS also blew out revenues. There is simply no comparisons to be made to stands alone as the premiere IR gaming company. Nothing hidden here either....the entire sector sold off, as well as the entire market. It has nothing to do with LVS. Watch this company though, because it will go back up just as quickly as the entire sector came down. You will see the rest of the sector will lag behind due to their results.

  • Report this Comment On May 08, 2012, at 7:58 PM, cp757 wrote:

    Naviot , its just Luck , good fortune, an advantage or success, considered as the result of chance. The market is scared of the "Sell in May" effect. This is the best time to buy. Las Vegas Sands had good luck in Las Vegas, Bethlehem, Macau, and Singapore. They are lucky that Singapore spent a billion dollars on a garden next to the Marina Bay Sands just to bring visitors. They where lucky they built a casino at the old Bethlehem steel plant that brought in so much money. It was just lucky that Adelson went ahead with his plans in 2002 for Cotai Central when everyone laughed at him for wanting to build in a swamp. Adelson was just lucky the Vegas Strip came back better for him than his competition. It was just lucky that his wife Miriam Adelson came up with an iconic idea of recreating the city of Venice around the world . Adelson was just lucky the dealers won more in Macau then the gamblers. Sheldon is just lucky that Spain will give him billions of free land in Spain to be build 12 casinos. That impressive growth in its top and bottom lines across all regions is just luck. That insatiable appetite for growth is not from luck however. In the future, they will spend 3 to 4 billion a year to expand the revenues beyond any gaming company we can imagine. All of this growth and luck could have gone the other way and they could have had legal problems with take overs of the company or high debt or even bad hold figures but they didn't. The stock will be over 70 dollars after the next conference call. I think Adelson put it best in the last conference call when he said "We're cooking on all cylinders," I'll bet his stove is lucky too.

  • Report this Comment On May 09, 2012, at 10:30 AM, spokanimal wrote:

    Yes, Navjot, it was a good quarter... but you need to cool your jets a bit, my friend.

    First of all, LVS played VERY lucky in Q1... unbelievably so in Singapore and Vegas. Normalize their good fortune, and their 70 cent EPS becomes 62 or 66 cents depending on how liberal or conservatively you apply the process of normalization.

    So yes, it was a beat... and given that cotai central wasn't yet open in Q1, it was a good beat... but not the table pounding beat your article would have people believe.

    Secondly, when you talk about opening a $5 billion Cotai resort (cotai central)... remember, it was only phase 1 and it's going to take another year to get the rest of that massive resort fully up and running.

    Finally, yes, Adelson plans to open another Cotai resort with some 3,600 hotel rooms... and yes, unlike Steve Wynn's challenges getting "gazetted", Sands already owns that land outright. But remember that Macau's government does things at it's own pace... as Sand's multi-year efforts to sell it's long-ago-built 4-seasons condos provide testament to. Sands still needs "archetectural approval" for that 3,600 room resort and if history is any guide, THAT could take anywhere from 1 week to 5 years to get through the Chui government.

    Nice piece, Navjot... but tone it down a bit for credibility amongst your readers who know better. We don't need excessive hype to know that Sands is the top stock pick in the sector.


  • Report this Comment On May 10, 2012, at 2:58 PM, cp757 wrote:

    Navjot, Las Vegas Sands had more good luck because Sands China Ltd. (1928.HK) will join Hong Kong's benchmark Hang Seng Index. They are like the S and P in the U.S. and they will remove China Railway Construction Corp. (1186.HK, 601186.SH) from the index. They will not be adding any other gaming company to the index because I guess they think they are unlucky . Las Vegas Sands is also very lucky that Genting revenue was down 33% over last year on bad luck and Marina Bay Sands was up 66% on good luck. Its just great how luck works. Adelson must be the luckyest guy on the planet.

  • Report this Comment On May 10, 2012, at 5:39 PM, bornlazy wrote:


    Just a little correction on your excellent comments. Heng Seng has two major index. The one we commonly referred to is the Heng Seng Index which is composed of 48, now 49, Hong Kong based companies. Those companies are called Blue Chip companies. The other one is Heng

    Seng China Enterprise Index. It is composed of 40 China based but IPOed on Hong Kong Exchange companies. Those companies are called Red Chip companies.

    SCL will be a blue chip company in Hong Kong.

  • Report this Comment On May 11, 2012, at 3:57 PM, cp757 wrote:

    bornlazy I did say the blue chip index that Sands China was added to was Hong Kong's benchmark Hang Seng Index. Thats why I refer to that one. I understand you have a distinction to the Seng China Enterprise Index. The HANG SENG INDEX is well known and only blue chip companies can get in. LVS is Blue Chip, Best of breed, highest growth, and best run in the world. They will open in Spain in 2016 and make 10's of billions of dollars.

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