Las Vegas Sands and Chipotle Earnings Please Investors, Stock Prices Strong

While most of the large cap S&P 500 type companies have reported, or will report earnings this week we are moving into the weeks where the far more interesting companies report.  Despite a percent of earnings beats below normal, the market has been VERY kind to most companies – letting a lot go, that in other earning reports would create some serious selloffs.  Tonight along with Green Mountain Roasters (NASDAQ:GMCR), were reports by Las Vegas Sands (NYSE:LVS) and Chipotle Mexican Grill (NYSE:CMG).  I’d characterize both as ok versus expectations – with the run ups in both, again, the market is being very kind in reaction.

First Chipotle which has become one of the teflon stocks of this era.   The stock is down to the $361s range in after hours, after closing near $370.  A glancing blow for this name…

Per IBD:

  • Chipotle Mexican Grill said late Wednesday that fourth-quarter profit rose 23% to $1.81 a share. But Wall Street expected $1.83. It was the second straight quarter that the burrito chain has missed views amid higher food costs.
  • Food costs were 32.2% of sales, up from 31.1%, due to higher commodity costs.
  • Total sales climbed nearly 24% to $596.7 million, slightly above forecasts for $591.2 million.
  • The company’s shares fell 2% in early after-hours trading after rising 1% to a record high 370.98 ahead of results.
  • The restaurant chain sees food costs and same-store sales rising in the mid-single digits in 2012. The company expects to add 155-165 stores.

Frankly with this valuation, and two misses in a row, it is very surprising how bullet proof this stock is.  It reminds me of Salesforce.com (NYSE:CRM) in its heyday, when no matter what the company reported, it seemed to never miss a beat stock wise.  The company earned $6.83 for the year, which leads to a now trailing P/E of 54.  Forward (one year ahead) P/E of 43….

Full report here.

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Meanwhile a similar reaction to Las Vegas Sands (NYSE:LVS) which essentially has only given up today’s gains in after hours, and is back down to low $49s.

Via Barron’s:

  • The company posted strong gains in Macau and Singapore, and smaller gains in Las Vegas. casino revenues actually fell 2.9% in Las Vegas although overall Vegas revenue was up 9.3%.
  • LVS posted 57 cents of EPS, in line with expectations. Revenue of $2.54 billion beat expectations for $2.47 billion.

Despite the moniker, LVS is really a proxy for Asia – and we can see in the chart once risk came back on in 2012 and Asian assets began to fly, money cycled into Las Vegas Sands.  Singapore continues to shine for LVS.

  • Macao Property Operations Adjusted Property EBITDA Increases 27.2% to Record $434.2 Million
  • Marina Bay Sands Adjusted Property EBITDA Increases 39.6% to Record $426.9 Million

25x trailing PE and 19x forward in this case.

Full report here.

Disclosure Notice

Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). Trader Mark also authors the blog Market Montage.

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