Vegas Sands' Macau bets seen lifting Q4 earnings -
27th January 2014
Vegas Sands (LVS) had a winning year in 2013 as earnings
and revenue growth soared amid the buildout of its
casinos in Chinese gambling hotspot Macau, and the
outlook is for results to stay strong.
world's biggest casino company reports Wednesday,
and consensus is for Sands to report a 56% Q4 earnings
per share jump to 84 cents. In the first three periods
of 2013, EPS growth accelerated from 1% to 48% to
is projected to rise 21% to $3.71 billion, in line
with growth in recent quarters.
a report Monday, Wells Fargo analyst Cameron McKnight
said he is positive on Macau operators such as Sands,
Hong Kong's Melco Crown Entertainment (MPEL), Wynn
Resorts (WYNN) and MGM's China operations, "as
the medium-term outlook appears strong."
expects strong growth in mass market revenue as Macau's
casinos, restaurants and entertainment sites attract
more tourists from China and throughout Asia.
JPMorgan Chase analysts last Wednesday downgraded
MGM Resorts International (MGM) from buy to neutral
and recommended investors generally trim holdings
of casinos operating in Macau, such as Sands.
analysts cited growth prospects already being included
in stock valuations, costs related to expanding casino
capacity in Macau, and possible moderation of growth
in the world's top gaming destination.
shares fell nearly 10% last week after the report
early 2012, the company's Sands China Ltd. subsidiary
opened Sands Cotai Central, its fourth casino in Macau
and third on the trendy Cotai peninsula. Sands continues
to expand the $4 billion Sands Cotai and has laid
plans for future casinos in Macau.
Sands has dropped plans to build a $30 billion Las
Vegas Strip-style complex in Madrid. The move is expected
to free funds to build more casinos in Macau.
of Sands, whose stock is on the IBD 50 list of top-rated
stocks, was down 1% in Monday afternoon trading on
the stock market today.