The Gory Details on Las Vegas Sands's Double Fumble

Las Vegas Sands (NYSE: LVS  ) reported earnings on Nov. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Las Vegas Sands missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank.

Margins shrank across the board.

Revenue details
Las Vegas Sands reported revenue of $2.71 billion. The 20 analysts polled by S&P Capital IQ looked for revenue of $2.89 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $2.41 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.46. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. GAAP EPS of $0.42 for Q3 were 4.5% lower than the prior-year quarter's $0.44 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.7%, 480 basis points worse than the prior-year quarter. Operating margin was 19.7%, 660 basis points worse than the prior-year quarter. Net margin was 12.9%, 470 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.96 billion. On the bottom line, the average EPS estimate is $0.59.

Next year's average estimate for revenue is $11.04 billion. The average EPS estimate is $2.20.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,798 members out of 2,111 rating the stock outperform, and 313 members rating it underperform. Among 459 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 399 give Las Vegas Sands a green thumbs-up, and 60 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Las Vegas Sands is outperform, with an average price target of $51.87.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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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 November 13, 2012, at 9:43 PM, BenKeel wrote:

    That last sentence of "you'll need more than Las Vegas Sands" is foolish and fool hearted. If it only returns to the March highs of $61, that's almost a 50% return and most analysts that cover the stock say that will be the case.

    Once again the foolish at "Motley Fool" don't seem to let us down.

    Rookies.

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8/27/2014 12:53 PM
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