Momentum: Las Vegas Sands (LVS)

Las Vegas Sands Corp. (LVS) just hit a new multi-year high after reporting an awesome 89% earnings surprise in late July, sending estimates soaring for this Zacks #1 rank stock.

Company Description

Las Vegas Sands Corp., together with its subsidiaries, develops multi-use, integrated resorts worldwide. The company was founded in 1988 and has a market cap of $19 billion.

With a big rebound in consumer spending taking hold after the economic collapse of 2008, discretionary industries like resort services and gambling are seeing big gains in revenue and income. That dynamic was on display on July 28 when Las Vegas Sands reported awesome Q2 results that handily beat expectations.

Second-Quarter Results

Revenue for the period was up 51% from last year to $1.06 billion. Earnings also came in strong at 17 cents, 89% ahead of the Zacks Consensus Estimate.

The strong quarterly results were driven by the opening of Marina Bay Sands in Singapore, which generated adjusted property EBITDA of $95 million and EBITDA margin of 44% in its first 65 days of operation.

The company also saw big gains out of China, where its majority owned subsidiary Sands China, Ltd. saw revenue jump 41% from last year to $1.04 billion.

Balance Sheet

Like many other companies, LVS continues to strengthen its balance sheet, with cash and equivalents up $1.28 billion from last year to $4.05 billion. Its total debt of about $10.5 billion is mostly in line with last year, with principal payments of $90 million scheduled for 2010 and $1 billion coming due in 2011.


The good quarter sent estimates jumping higher, with the current year adding 27 cents to 66 cents and the next year adding 22 cents to 97 cents, a 48% growth projection.


After the recent string of gains, the valuation picture does look a bit bloated, as shares trade with a forward P/E of 44X against its peer’s average of 26X.

2-Year Chart

LVS recently hit a new multi-year high after rebounding from a key trend line that has been in play for most of the last year. Look for more support from the trend and previous breakout area on any weakness, take a look below.

LAS VEGAS SANDS (LVS): Free Stock Analysis Report

About Michael Vodicka 49 Articles

Affiliation: Zacks Investment Research

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