Las Vegas Sands Earnings: Snaps Strong Streak with Profit Drop

Las Vegas Sands Corp. (NYSE:LVS) reported a lower net income in second quarter, missing analysts’ estimates. Las Vegas Sands develops integrated resorts worldwide. It owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo and convention center.

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Las Vegas Sands Corp. Earnings Cheat Sheet

Results: Net income for Las Vegas Sands Corp. fell to $240.6 million (29 cents per share) vs. $410.6 million (45 cents per share) a year earlier. This is a decline of 41.4% from the year-earlier quarter.

Revenue: Rose 10% to $2.58 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Las Vegas Sands Corp. fell short of the mean analyst estimate of 59 cents per share. It fell short of the average revenue estimate of $2.78 billion.

Quoting Management: Mr. Sheldon G. Adelson, chairman and chief executive officer, stated, “While our quarterly results did not meet my expectations, and were impacted by lower hold on table games play compared to last year’s second quarter, higher provisions for accounts receivable at Marina Bay Sands in Singapore, and elevated legal expenses, our financial results reflected solid revenue growth overall and significant cash flow in both Macao and Singapore, as well as the continued steady execution of our Cotai Strip development plan in Macao.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 28.1%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 47.1% from the year earlier quarter.

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the first quarter, net income rose 72.5% from the year earlier, while the figure increased 33.7% in the fourth quarter of the last fiscal year, 98.1% in the third quarter of the last fiscal year and 882.2% in the second quarter of the last fiscal year.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 70 cents versus a mean estimate of net income of 60 cents per share.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the third quarter is 68 cents per share, a drop from 71 cents. Over the past sixty days, the average estimate for the fiscal year has reached $2.65 per share, a decline from $2.73.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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