Thursday, October 27, 2011

Las Vegas Sands (LVS) Beats by 3 Cents, Slight Beat on Top Line

Not sure any of this 'stock specific' stuff matters much in the "student body left" trading environment where everything goes up, or goes down but I continue to cling to some old school ways.  First on the agenda tonight is Las Vegas Sands (LVS) which along with Wynn has essentially become an Asian play.  (LVS has both Singapore and Macau, Wynn just Macau)  Both companies had been hit hard by worries about slowdown in China a month ago but have run with the rest of the market.

LVS beat the bottom line by 3 cents, and has a small beat on the top line ($2.41B v $2.34B).  Full report here.
  • Net Revenue Increases 26.2% to Record $2.41 Billion
  • Consolidated Adjusted Property EBITDA Increases 43.2% to Record $924.1 Million
  • Consolidated Adjusted Property EBITDA Margin Increases 460 Basis Points to 38.4%
  • Marina Bay Sands Adjusted Property EBITDA Increases 71.3% to $413.9 Million
  • Macau Property Operations Adjusted Property EBITDA Increases 16.1% to $388.3 Million
  • Adjusted Earnings per Diluted Share Increases 61.8% to $0.55

Forgetting Las Vegas (which actually showed some decent improvement), here are the properties that matter:
  • In Singapore, Marina Bay Sands produced a record $413.9 million of adjusted property EBITDA during the quarter and an EBITDA margin of 52.2%. Record VIP, mass gaming and slot volumes coupled with steady growth in visitation and non-gaming revenue streams including hotel, food and beverage, retail and entertainment reflect the broad appeal of the property to Singapore's visitors from across the Asian region.
  • In Macau, we experienced stronger gaming volumes in our Sands China Ltd. property portfolio, while adjusted property EBITDA reached $388.3 million and adjusted property EBITDA margin expanded to reach a market-leading 33.3%. The consistent growth of our higher margin mass table and slot businesses, together with the contribution from the important non-gaming (hotel, retail and convention) components of our integrated resort business model, continue to drive margin improvement at Sands China Ltd.
And in 5 months we have Sands Cotai Macau to join the party....

The stock is down by about half a buck in after hours but of course was up 4% along with the rest of the market, so little reaction.  EDIT 4:16 PM - as investors digest, the stock is now up a buck in after hours.

Technically the chart is ok, but a lot of other merchandise is in full break out mode, so until this consolidation period ends, there are other ways to make money.

No position

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