Traders are selling shares of Las Vegas Sands Corp. (NYSE: LVS)
ahead of first-quarter earnings expected out after the market close
Tuesday. The stock last traded at $46.47, down 2.2 percent from
Monday's closing price.
The casino operator is expected to report EPS of $0.44 on revs of
$2.14 billion. Last quarter, Las Vegas Sands posted EPS of $0.42 on
revenue of $2.02 billion. For the first quarter of 2010, the
company saw earnings of $0.07 per share on sales of $1.33 billion.
Shares fell 7.4 percent through the quarter and are up 12.6 percent
Las Vegas Sands shares currently trade at a P/E of 20.8x FY12 EPS
estimates, compared with 29.1x at Wynn Resorts (Nasdaq: WYNN) and
49.6x for Boyd Gaming Corp. (
Data from Bloomberg has 20 analysts with a Buy on Las Vegas Sands,
7 with a Hold, and two suggesting to Sell. The analyst price target
average is $54, with a high of $70 and low of $44. Shares have
traded in a range of $55.47 - $18.08 over the last 52-weeks.
For the most part, analysts were equally as concerned with Macau
revenue as they were unconcerned with pending litigation. Macau
revs mostly accelerated in the quarter: 33.2 percent to 18.57
billion Macanese patacas in January, 47.7 percent to 19.86 billion
Macanese patacas in February, and 48.0 percent to 20.09 billion
Macanese patacas in March.
- Wells Fargo sees EPS of $0.49, but expects a little upside
from results in Macau. "While we anticipate investors will
largely focus on what we expect to be a sequential improvement in
VIP rolling chip volume at Marina Bay Sands, we believe LVS is
poised to post another solid quarter of year over year property
level EBITDA growth at each of its properties in Macau."
Turning to the Las Vegas Strip, the firm said, "Given the
continued sluggishness of the Las Vegas Strip from a big picture
perspective, we believe the primary focus of the Q111 Las Vegas
results for LVS should be margins. Recall, LVS shifted its view
on comps and other promotional activities in the Q410,
effectively reigning in a vast majority of its comp related
programs. We would expect to see more of this mindset shift flow
through in the Q111, though we note that occupancy and domestic
table and slot play could see some market share contraction."
- KeyBanc is looking for EPS of $0.46, which was recently
increased from a previous estimate of $0.44. KeyBanc expects
Macau revs of $1.24 billion or better. "We continue to believe
that the recent weakness in shares of LVS in the aftermath of the
announced FCPA investigation has created a compelling
opportunity. We feel confident that the claims made by a jilted
ex-employee and related investigations by various agencies will
prove to be less than game-changing events. We expect this
situation to be resolved over the intermediate term (a couple of
years) with worst case outcome a sizable fine or settlement of
less than $1 per share, that will have little impact on shares of
this quality growth name."
- Citadel Securities recently increased its first-quarter EPS
estimate to $0.43 on sales of $2.192 billion. "For the Venetian
Macao, Sands Macao and Plaza Macao combined, we are now modeling
for 21.5% YoY growth in GGR for 1Q11, up from 19.6% previously.
Importantly, we believe that our new forecast could still prove
conservative relative to how fast the overall market has been
growing. However, we would highlight that we believe it is
unlikely that LVS's relatively mature Macau assets would
outperform the overall market's growth rate, at least not until
the company's new Sites 5&6 properties open on Cotai at the
end of the year - pulling more traffic closer to its Venetian and
Plaza properties. For the full year 2011, we believe LVS's
existing properties in Macau should be able to grow net revenue
in excess of 18% and property EBITDAR in excess of 17% - and this
is before Sites 5&6 open."
recently issued a preview
for gaming stocks, stating that the firm sees Las Vegas Sands
beating expectations on strong Macau results.
Stay tuned to StreetInsider.com's
section to see our analysis of the highly-anticipated quarterly
results within seconds of the release.