Las Vegas Sands (LVS) earnings and revenue fell short Wall Street estimates, as U.S. and Singapore revenue fell, but the casino giant raised its dividend.
X Las Vegas Sands Earnings Estimates: Wall Street expects Las Vegas Sands earnings per share to climb 9% to 84 cents, according to Zacks Investment Research. Revenue is seen ascending 7% to $3.415 billion.Results: EPS of 77 cents on revenue of $3.37 billion. Macau operations revenue increased 13% to $2.15 billion. But Singapore's Marina Bay Sands revenue dropped 2.9% to $766 million, Las Vegas revenue fell 2% to $379 million, and Sands Bethlehem revenue slipped 4.2% to $138 million. The board also approved an 8-cent increase to the dividend for 2019, bring it to an annual payout of $3.08, or 77 cents a quarter. "We remain supremely confident in the future opportunity in Macao, and have therefore elected to meaningfully increase the scale of our investments in the Four Seasons Tower Suites Macao, St. Regis Tower Suites Macao and The Londoner Macao, which will now total $2.2 billion in investment through 2021," said Chairman and CEO Sheldon Adelson in a statement. Las Vegas Sands Stock The casino behemoth's securities fell 2.4% late after closing down 2.6% at 52.00 on the stock market today, hitting its worst levels since March 2017. Las Vegas Sands stock has plunged since reaching a high of 81.45 on June 18. Las Vegas Sands stock has a lowly IBD Composite Rating of 22. It is also worth noting that its Accumulation/Distribution Rating, which reflects the relative degree of institutional buying and selling, is a worst-possible E. Las Vegas Sands isn't alone. The Leisure-Gaming/Equipment industry group ranks a lowly 172 out of the 197 groups tracked. Las Vegas Sands has several Las Vegas properties, but Macau is its top revenue source. Among other major casino stocks with big Macau and Vegas operations, MGM Resorts International (MGM) tumbled 4.4%, Wynn Resorts (WYNN) dropped 3.2%, Macau-focused Melco Crown Entertainment (MLCO) dropped 2.15%, and recent IPO Studio City (MSC), which is also focused on Macau, sank nearly 8%. U.S.-focused Caesars Entertainment (CZR), which reportedly turned down merger overtures from Golden Nugget owner Tilman Fertitta, retreated 6.2%. Among regional casinos, Penn National Gaming (PENN) and Boyd Gaming (BYD) both fell 5.6%. Rising Sun Boost For Las Vegas Sands? Opening one of the first legal casinos in Japan would be a catalyst for Las Vegas Sands stock. It was tipped for success on Wednesday by Morningstar analyst Dan Wasiolek. "We see Las Vegas Sands as most likely to win one of the two urban gaming licenses, due to its strong resort experience in Singapore and Las Vegas, where we believe regulation is more stringent than in Macau and the Philippines, and where problem gambling and crime issues have been controlled," he said in a report. "Additionally, Las Vegas Sands has shown itself to be a valued partner in Macau where it has invested $13 billion since 1999." Japan's parliament passed a controversial bill in July to open the door for casino operations in the country. Sands, Wynn, Melco Resorts & Entertainment (MLCO) and others aim to set up shop in the nation. Sin City Puts Casino Stocks In Purgatory The group sold off heavily in August after warning that Las Vegas revenue will fall dramatically in Q3. They faced tough comparisons on the previous year's bonanza from Floyd Mayweather's megafight with Conor McGregor. Casino stock Caesars Entertainment warned that Q3 bookings were soft at its Las Vegas casinos when it reported earnings. There has also been growing resistance among visitors to rising resort fees and fees for parking, which used to be free but can now cost $30 a day. However, analysts say the arrival of the NFL's Raiders franchise, the strong business climate, robust GDP growth, improving entertainment offerings and an ample, convenient airport will act as catalysts. And there has been a double whammy for Macau-tied casino stocks like Las Vegas Sands, Wynn Resorts, MGM Resorts and Melco Resorts. There are fears that the Chinese gambling mecca could be hit by the country's economic slowdown. Deutsche Bank cut its 2019 forecast for gaming revenue growth to 4% from 11% growth. This was due to concerns that high rollers may stay away. Analysts also said China's only legal gambling hub is at the start of a downward earnings revision cycle. YOU WILL ALSO LIKE: A Losing Proposition? Casino Stocks Fall Over Macau Slowdown Fears Tesla, Microsoft Lead Top Stocks Reporting: Investing Action Plan These 5 Stocks With Solid Sales Are Holding Up Despite Downturn
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