Las Vegas Sands Corp. (
) is trading higher today, ahead of the company's fourth quarter
2010 earnings report, expected out after the market closes today.
Shares are up1.5% in the afternoon session.
LVS is expected to report EPS of $0.39 on revs of $2.07 billion.
Last quarter, the Las Vegas, NV-based casino and entertainment
giant posted EPS of $0.34, ex-items, on revs of $1.91 billion,
easily surpassing the Street consensus looking for EPS of $0.23 and
revenues of $1.79 billion. Looking back at Q409, EPS for LVS was
in-line with the consensus at $0.03 on revenues of $1.28, a slight
Sands' shares gained 30.6% through the quarter, to $45.95 at the
end of December. LVS is up 9.3% since then, and made a spectacular
run through 2010, ending the year 176% better.
A simple valuation puts LVS with a forward P/E of 20.1x FY11 EPS
estimates, compared to 44.1x for Wynn Resorts (Nasdaq: WYNN) and an
astonishing 222.8x for Boyd Gaming (
), who is just getting back into positive territory. MGM
) is not expected to produce positive earnings in FY10 or FY11.
Data from Bloomberg has 17 analysts with a Buy on LVS, 9 with a
hold, and one suggesting to Sell. The analyst price target average
is $53.50, with a high of $70 and low of $44. Shares have traded in
a range of $55.47 - $14.88 over the last 52-weeks.
- Goldman Sachs sees stronger Q4 results for LVS based on
accelerating results in Macau and Singapore, and to a lesser
extent in Las Vegas. They're looking for EPS of $0.30. Q4 EBITDA
is expected to be $676 million, compared to $264 million in Q409
and $590 million last quarter.
Upside risk includes a faster-than-expected Las Vegas recovery,
Macau acceleration, and Singapore success. Downside includes high
expectations into the Singapore opening or changes to Macau
Goldman currently has a Neutral rating on the shares with a price
target of $44.
- Hudson Securities is also expecting big things from Singapore
and Macau. They expect Q410 EBITDA of $674 million, with 52%
derived from Macau. Hudson is expecting $66 million in EBITDA
from Las Vegas, amounting to 9% of the total. Singapore should
account for 41% of EBITDA, or about $295.2 million.
Hudson is also concerned over the recent departure of Marina Bay
Sands CEO, which they believe will add a little instability to
LVS's Asia operations. Other topics will be progression of Four
Seasons apartment sales in Cotai, and strength in Singapore.
Hudson has a Buy rating on the shares, with a price target of
$56. They're comfortable holding the shares ahead of results.
- On the Marina Bay CEO departure, J.P. Morgan sees the
promotion of Rob Goldstein to President of Global Gaming Ops as a
positive to Asia ops. They think that "part of Mr. Goldstein's
new role is to build out its management bench in Asia (Singapore
in particular) and has been recently active in this regard."
JPM is positive on LVS into earnings, including solid results out
of Marina Bay. They maintain their Overweight rating.
Investors will definitely looking for an update on Cotai, where LVS
said in early December that the local government
hasn't approved their application
for a a land concession for Parcels 7 and 8. The company already
sank $100 million into those projects. Conversely, a few weeks
later, LVS said that the Macau government
will soon approve
the sale of the company's shares in its Four Seasons-branded
apartment-hotel in Cotai, which some peg as a $1 billion deal for
Las Vegas Sands Corp. is expected to release their Q410 earnings on
Thursday, February 3, 2011, at approximately 4:00pm EST. Stay tuned
section to see our analysis of the highly-anticipated quarterly
results withi0 n seconds of their release.