Las Vegas Sands Corp (NYSE:LVS)
Consumer Discretionary - Hotels Restaurants & Leisure | Reports July 25, After Market Closes
Key Takeaways
- The Estimize consensus is calling for earnings per share of 55 cents on $2.73 billion in revenue, slightly below Wall Street on both the top and bottom line
- Macau continues to be a thorn in the side of casino operators including Las Vegas Sands
- Improvements in non gaming segments and a focus on Las Vegas markets are expected to boost margins and foot traffic
Las Vegas Sands is scheduled to report second quarter earnings Monday after the market opens. The casino and resorting group has struggled jumpstarting revenue growth the past 2 years. In each of the past 7 quarters revenue has missed expectations due to sluggish performance in Macau. Macau is the Las Vegas of China and contributes a large portion of revenue to the casino industry. Unfortunately the turmoil hasn’t subsided and Las Vegas Sands appears to be on course for another poor quarter.
The Estimize consensus is calling for earnings per share of 55 cents on $2.73 billion in revenue, slightly below Wall Street on both the top and bottom line. Compare to the year earlier earnings are projected to decline by 8% with sales down by 6%. The stock is up almost 25% in the past 6 months but investors shouldn’t expect to see a boost afters it reports. Typically shares have stayed flat through and the month following earnings.
Like its peers, Las Vegas Sands has had trouble stabilizing operations in key markets, mainly Macau. Macau is one of the largest casino destinations in the world which has struggled lately from new gaming regulations and a general slowdown in China.Unfortunately there doesn’t seem to be any major improvements in the Macau region for the quarter to be reported. Nonetheless improving non gaming segments and a focus on Las Vegas attractions should lead to greater traffic and boost margins.
Do you think LVS can beat estimates? There is still time to get your estimate in here!