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Already struggling to make forward progress, the weight of the
recent gains finally became unbearable on Thursday. The
's close of 2091.48 was the biggest selloff in two weeks, and
left the index 0.52% lower than Wednesday's closing price.
But for shareholders of
Las Vegas Sands Corp.
United Continental Holdings Inc
Verizon Communications Inc.
), Thursday was even worse, mostly thanks to earnings reports and
Here's a closer look at what up-ended these names.
Las Vegas Sands Corp. (LVS)
While the regulatory clamp-down on Macau's gambling business
has passed the one-year mark and is no longer creating tough
year-over-year comps, that headwind continues to make growth
tough to muster.
It's a reality Las Vegas Sands owners were reminded of today,
when LVS posted a first-quarter earnings miss mostly thanks to
weakness in its Macau ventures. The
bottom line of 45 cents
per share missed average estimates of 61 cents per share of LVS,
and was down 32% year-over-year. Revenue of $2.72 billion was
down nearly 10%, and also missed estimates of $2.88 billion.
Bernstein Research figured Las Vegas Sands' Macau
hotel occupancy fell from 85% in the same quarter
a year earlier to 78% this time around,
as the casino and resort operator largely refused to lower
rates to compete with price drops put in place by its
competitors. Some money is better than no money, though, and if
guests don't stay at the hotel, gaming revenues also suffer.
LVS ended the day down 9%.
United Continental Holdings Inc (UAL)
United Continental Holdings shares lost 10% of their value
today after posting poor revenue for the previous quarter, and
underscoring that shortcoming with a disappointing second-quarter
The bottom line wasn't bad for the company's first fiscal
quarter … from some perspectives. The
per-share profit of $1.23
was better than the profit of $1.18 per share the pros were
expecting. Net income was still down 38% on a year-over-year
basis, however, even if higher taxes were the core of the added
Revenue of $8.2 billion was down nearly 5%
, though, and passenger revenue per available seat mile fell
Looking ahead, the airline expects unit revenue to
fall between 6.5% and 8.5% in the current
Verizon Communications Inc. (VZ)
Last but not least, Verizon Communications may have managed to
meet its first quarter earnings estimates, but revenue fell short
of expectations, and the pros think the headwinds are just
beginning to blow.
Last quarter, Verizon
earned $1.06 per share
on $32.17 billion in revenue. That bottom line was in line with
estimates. Analysts, however, were looking for sales of $32.41
The lackluster results - earnings grew only 2% last quarter -
may well indicate the fundamental picture is going to get worse
for VZ before it gets better. Citigroup believes the
price war being waged among all wireless carriers
right now is starting to take a measurable toll
. Meanwhile, the company itself said that the worker
strike currently underway was a threat to its
second quarter earnings
VZ closed 3.3% lower on Thursday.
As of this writing, James Brumley did not hold a position
in any of the aforementioned securities.
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