Las Vegas Sands Corp. Earnings: Will Luck Be a Lady on Thursday?

The casino giant is on top of the gaming world, but can the good times keep rolling?

Apr 22, 2014 at 10:04AM

On Thursday, Las Vegas Sands (NYSE:LVS) will release its quarterly report, and investors expect the casino giant to keep growing at a healthy pace. Yet as competition from Wynn Resorts (NASDAQ:WYNN), Melco Crown (NASDAQ:MPEL), and other casino companies remains fierce, especially in the key market of Macau, Las Vegas Sands has broadened its horizons in hopes of scoring new locations to add to its worldwide empire.

Las Vegas Sands' name is now somewhat misleading, as its profitability has increasingly come not from its Las Vegas headquarters but rather from the Asian gaming capital of Macau. A region full of flush gamblers who used to make the pilgrimage across the Pacific to Vegas now largely stays closer to home, and Las Vegas Sands has taken full advantage. But can the company retain its first-mover advantage in some other promising potential markets? Let's take an early look at what's been happening with Las Vegas Sands over the past quarter and what we're likely to see in its report.

Lvs

Stats on Las Vegas Sands

Analyst EPS Estimate

$0.93

Change From Year-Ago EPS

31%

Revenue Estimate

$3.88 billion

Change From Year-Ago Revenue

17.5%

Earnings Beats in Past 4 Quarters

2

Source: Yahoo! Finance.

Will Las Vegas Sands earnings be a big winner?
Analysts have been more optimistic about Las Vegas Sands earnings in recent months, boosting their first-quarter estimates by $0.06 per share and their full-year 2014 and 2015 projections by double and triple that amount, respectively. The stock, though, has pulled back by around 6% since mid-January.

Las Vegas Sands' fourth-quarter earnings showed just how critical Macau has been for its overall prospects. As with Wynn Resorts and Melco Crown, Las Vegas Sands had huge growth in Macau, where its Venetian Macau resort on the increasingly popular Cotai Strip saw revenue rise by 36%. That dramatically outpaced overall growth for the industry in Macau during the quarter, and ongoing expansion of its Sands Cotai Central also added to growth, even though Las Vegas Sands' properties in the older area on the Macau Peninsula struggled by comparison.

Lvs

Marina Bay Sands, Singapore. Source: Las Vegas Sands.

But Las Vegas Sands' efforts to go beyond Macau in Asia haven't gone as well as the company had hoped. Fourth-quarter results in Singapore were weak, with sales falling 8% due to a substantial decline of high-roller play. That sent shares of Las Vegas Sands down substantially, as investors have increasingly taken Macau's success for granted.

Still, that hasn't stopped Las Vegas Sands from looking at potential expansion elsewhere. Vietnam and South Korea offer interesting opportunities for growth, but arguably the most exciting prospective market is Japan, which is looking at the potential boost to tourism as an impetus for considering opening up its lucrative developed-economy market to gaming. With Las Vegas Sands having a history of breaking ground successfully in other areas, it has an edge over Wynn Resorts and Melco Crown in gaining valuable concessions connected to possible future projects in these countries.

In the Las Vegas Sands earnings report, watch to see how the company does in its various markets. As Wynn Resorts gets closer to opening its Cotai property, Las Vegas Sands will need to be ready to deal with rising competition in order to avoid losing some of its lucrative stranglehold in Macau while still positioning itself for regional growth.

You don't want to miss this
The Economist compares this disruptive invention to the steam engine and the printing press. Business Insider says it's "the next trillion-dollar industry." And everyone from BMW to Nike to the U.S. Air Force is already using it every day. Watch The Motley Fool's shocking video presentation today to discover the garage gadget that's putting an end to the Made In China era... and learn the investing strategy we've used to double our money on these three stocks. Click here to watch now!

Click here to add Las Vegas Sands to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Dan Caplinger has no position in any stocks mentioned, and neither does The Motley Fool. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers