Is Las Vegas Sands
Net revenue increased just 4.5% quarter over quarter to $2.11 billion and adjusted property EBITDA increased a measly 0.9% to $745.7 million. If it weren't for a huge increase in property EBITDA at Four Seasons Macau, results would have been even worse.
Not only did adjusted earnings per share of $0.37 fall below analysts' estimates of $0.44, but adjusted property EBITDA was down sequentially at Las Vegas Sands' four most profitable properties.
Q4 2010 Property EBITDA
Q1 2011 Property EBITDA
|Marina Bay Sands||$305.8 million||$284.5 million|
|Venetian Macau||$235.6 million||$228.4 million|
|Sands Macau||$93.4 million||$92.6 million|
|Las Vegas Properties||$80.6 million||$65.2 million|
Bad luck played a role in both Singapore and Las Vegas, but that comes with the territory. Wynn Resorts
This is the second straight quarter shares have been hit hard by disappointing results. This time Singapore is in focus, as questions remain how that market will play out. Even if we level out EBITDA to account for bad luck, the property isn't displaying much growth quarter over quarter. So maybe it isn't fair to compare the market to fast-growing Macau.
Time to rethink Las Vegas Sands?
Overall, I'm very disappointed in yesterday's news and think this news will bring up the question of whether Las Vegas Sands stock has overrun its true value again. Last time I put a value on the Singapore casino, I used a 12 times EBITDA multiple and still found the stock to be overvalued. We may have to revisit that now that Marina Bay Sands' slow growth doesn't appear to be worth that type of multiple.
What do you think about Las Vegas Sands' results? Let me know in the comments section below.
Fool contributor Travis Hoium owns shares of Melco Crown and is short MGM Resorts. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.