Should You Short Las Vegas Sands Corp. (LVS) Now?

Page 1 of 2

Las Vegas Sands Corp. (NYSE:LVS) announced fourth quarter results after the bell last Wednesday. The stock, which was at $53.38 at opening trade on Jan. 28, slipped 3.9% to $51.05 at the close of trading the next day. On the day the results were to be released, the stock gained 0.94% and closed at $51.56. However, after the results became public, the after hours quote was $54.25, a gain of 5.22%.

Considering that the company reported an increase of 36% in fourth quarter profit and that the stock rose 15% in January, is LVS a buy at this price or is it a good short? Let us review the results and try to find an answer.

Las Vegas Sands Corp. (NYSE:LVS)Las Vegas Sands: The Company

LVS is a Fortune 500 company and a leading developer of destination properties (integrated resorts). It operates in Macao, Singapore and the US. The integrated resorts developed and operated by the company feature gaming, entertainment and retail, premium accommodations, convention and exhibition facilities. In Macao, the company operates through Sands China Ltd (SCL), 70.3% of which is owned by LVS. SCL operates The Venetian Macao; Four Seasons Macao; Sands Macao, and Other Asia (comprised primarily of its ferry operations and various other operations that are ancillary to its properties in Macao). The Singapore operating segment is comprised of Marina Bay Sands, which features roughly 2,600 rooms and suites along with 160,000 square feet of gaming space housing 2,500 slot machines and 600 gaming tables.

Las Vegas Sands’ US properties include the Venetian Resort Hotel Casino (The Venetian Las Vegas) and the Palazzo Resort Hotel Casino (The Palazzo), Five-Diamond luxury resorts on the Las Vegas Strip, as well as the Sands Expo and Convention Center (the Sands Expo Center) in Las Vegas, Nevada and the Sands Casino Resort Bethlehem (the Sands Bethlehem) in Bethlehem, Pennsylvania.

Earnings

  • Quarterly Results

Quarterly EPS of LVS declined sharply in the second quarter 2012 when it reported EPS of $0.44 as compared to $0.70 in the first quarter. However, in subsequent quarters, it was able to recover part of lost ground and reported EPS of $0.54 in the fourth quarter of 2012.

Net revenue increased by 20.9% and net income attributable to common stock rose by 35.8%, reaching $434.8 million. On Dec. 6 the company paid a special dividend of $2.75 per share in addition to the recurring dividend of $0.25 per share on Dec. 18.

Gaming volumes in Macao reached a record $622.2 million, which resulted in a 43.3% increase in property adjusted EBITDA in Macao.

  • Annual Results for the year ended Dec. 31, 2012

Net revenue for the year showed an increase of 18.3%, up from $9.41 billion to $11.13 billion. The company was able to post a record consolidated EBITDA of $3.79 billion, and net income attributable to common stock rose 20.1% to reach $1.52 billion or $1.85 per share. During the year, the company distributed $3.75 per share to shareholders by way of quarterly and special dividends.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!