Tuesday, July 26, 2011

Las Vegas Sands Corp. (NYSE: LVS): Q2 Earnings Preview 2011

Las Vegas Sands Corp. (NYSE: LVS) is scheduled to release its second-quarter earnings after the closing bell on Tuesday, July 26, 2011. Analysts, on average, expect the company to report earnings of 44 cents per share on revenue of $2.21 billion. In the year ago period, the company reported earnings of 17 cents per share on revenue of $2.30 billion.

Las Vegas Sands Corp., together with its subsidiaries, develops multi-use integrated resorts worldwide.  The Company is also creating a master-planned development of integrated resort properties, anchored by The Venetian Macao.

In the preceding first-quarter, the Las Vegas, Nevada-based company's net income was $228.2 million, or 28 cents per share, compared to a net loss of $28.9 million, or $0.04 per share, in the year-earlier quarter. On an adjusted basis, the company earned 37 cents per share in the first quarter. Revenue surged 58.2% to $2.11 billion from $1.33 billion in the same quarter of 2010. Analysts, on average, expected the company to report earnings of 44 cents per share on revenue of $2.14 billion.

The company has continued to benefit from the gaming boom in Asia. The Singapore gambling market is still relatively young, and Adelson and other company officials have touted the potential of big profits there for years. In Singapore, Las Vegas Sands opened Marina Bay Sands last year in April and first quarter 2011 revenues were $584.9 million, up 4.4% sequentially. The property has been well received by the market and it provides the company a great opportunity to explore the Asian market.

The company also has seen strong revenue growth and better margins in Macau. Macau, the only Chinese city where gambling is legal, has survived the economic downturn relatively well. Gaming-friendly policies of the local government have enabled the industry to achieve record earnings. Macau government recently announced that the world's largest gambling market posted an annual 52.4 percent rise in gaming revenue in June to 20.8 billion patacas.

However, the company’s Las Vegas business remains a concern. Las Vegas business, which was hit the hardest during the slowdown, is rebounding at a slow pace due to excess capacity in the market.

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