Las Vegas Sands Corp. (LVS): What You Need To Know

The big picture
If we take luck out of the picture, EBITDA rose 28.2% from a year ago, to $1.19 billion, driven by the opening of Sands Cotai Central. Earnings per share were also up 28.6%, to $0.72, if we adjust for luck. When Melco Crown reports earnings next week, I expect similar strong results, driven by The Venetian Macau’s neighbor City of Dreams. Cotai is taking almost all of the growth Macau can muster.

My only reservation in making Las Vegas Sands Corp. (NYSE:LVS) my top gaming stock is the stock’s price. The company is now valued at 13.9 times trailing EBITDA, which would only be slightly lower if we adjust for a full year of results from Sands Cotai Central. That’s a steep price for a gaming stock, even one with the best properties in Macau.

How Las Vegas Sands came to dominate Macau

For many companies, successfully capitalizing on a booming Chinese economy is like winning the jackpot. That’s indeed the case for gaming company Las Vegas Sands Corp. (NYSE:LVS), which made a big bet on Macau gaming about a decade ago that’s paid off in spades.

The article Cotai Drives Las Vegas Sands’ Record Results originally appeared on Fool.com and is written by Travis Hoium.

Fool contributor Travis Hoium manages an account that owns shares of Wynn Resorts, Limited. The Motley Fool has no position in any of the stocks mentioned.

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