Friday, May 7, 2010

Las Vegas Sands (LVS) Narrows Loss

What a day to report earnings...

Yesterday evening, Las Vegas Sands (LVS) - among the hottest stocks in the market - reported its first quarter data. I had sold off almost all the position far too early in mid March. I placed a limit order at a small gap in the lower $17s that was created in early March. Amazingly, in yesterday's plunge LVS did NOT fill that gap, instead falling tot he 200 day moving average before rebounding like a yo-yo. As you can see below we are going to have some very screwed up charts in the near term as we deal with complete outliers created by yesterday's action.

Fundamentally the report was an improvement, but the stock is still trading on things other than earnings power. This is another backdoor way to get exposure to Asia, although the company obviously continues to have a large stake in U.S. ventures.

Via AP:
  • Casino developer Las Vegas Sands Corp. said its first-quarter loss narrowed as its gambling revenue rose and cuts that began last year helped keep its costs in check. The Las Vegas-based company led by billionaire Sheldon Adelson said Thursday that it lost $28.9 million, or 4 cents per share, compared with a loss of $80.9 million, 12 cents per share, a year earlier. Excluding one-time items, the company's net income was $53.5 million, or 7 cents per share, compared with $8.9 million, 1 cent per share, last year.
  • Sands' net revenue was $1.33 billion, a figure it called a record high, compared with $1.08 billion in last year's first quarter.
  • Analysts polled by Thomson Reuters expected Sands to earn 2 cents per share on revenue of $1.31 billion.
  • Sands said its quarterly revenue in the Chinese gambling enclave of Macau rose 24.2 percent to $945.8 million. The company said its net income for its Chinese operations increased to $113.3 million, compared with $36.9 million during the first part of 2009.
  • The company last month opened the its newest resort in Singapore. Adelson said the Singapore casino is attracting high-rolling gamblers from unexpected places, including Singapore, Indonesia and Malaysia.
  • In Las Vegas, where the gambling market is struggling, Sands said its Venetian resort was 89.3 percent full at $202 per night, while room and occupancy rates were higher at the company's Palazzo resort.
  • "This was a pretty solid result all around," said Sanford Bernstein analyst Janet Brashear. "They are showing better margins and you can't do that unless the tide has turned."
Debt was the major issue for this company, causing it to plunge near bankruptcy not 15 months ago.
  • Sands said it had $3.93 billion in unrestricted cash and short-term investments. It said its total debt as of March 31 was $10.46 billion, with $131.3 million due this year. Another $1.35 billion is due next year.

Long Las Vegas Sands in fund; no personal position


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