Las Vegas Sands Q3 Earnings Preview

(RTTNews) - Casinos operator Las Vegas Sands Corp. (LVS) is expected to release its third-quarter financial results after the market close. Analysts, polled by Thomson Reuters, are looking for earnings of $0.64 per share on revenue of $2.99 billion for the third quarter.

The casino companies operating in China's Macau gambling district have been witnessing a downtrend in monthly revenues, largely reflecting a crackdown on corruption by the Chinese government, smoke-free initiatives, and the gradual movement from a VIP market to a mass market model.

Despite the slow down in Macau, Las Vegas Sands is currently developing The Parisian Macao, its fourth property at Cotai Strip Resorts Macao, expected to open in 2016. The company's business strategy is to leverage its unique integrated resort business model to help transform Macao into Asia's premier business, leisure, convention and gaming destination.

During second quarter, the company said its industry leading cash flows and balance sheet strength enable it to continue its recurring dividend programs at both Las Vegas Sands and Sands China while retaining more than sufficient financial resources to invest for future growth and pursue new development opportunities.

Q2 Highlights

In the last quarter, Las Vegas Sands reported net income of $469.2 million or $0.59 per share compared with $671.4 million or $0.83 per share prior year.

Excluding items, adjusted earnings for the quarter were $0.60 per share compared with $0.85 per share a year ago.

Revenues for the quarter were $2.92 billion compared with $3.62 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.61 per share on revenues of $2.99 billion for the quarter. Analysts' estimates typically exclude special items.

CEO Sheldon Adelson said the operating environment in Macao, particularly in the high-end gaming segments, remained challenging during the quarter.

Company Profile

Las Vegas Sands develops, owns, and operates integrated resorts in Asia and the United States. The company owns and operates The Venetian Macao Resort Hotel, Sands Cotai Central, the Four Seasons Hotel Macao, the Plaza Casino, and the Sands Macao in Macau, the People's Republic of China.

It also owns and operates the Marina Bay Sands in Singapore; The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and Five-Diamond luxury resorts on the Las Vegas Strip; the Sands Expo and Convention Center in Las Vegas, Nevada; and the Sands Casino Resort Bethlehem in Bethlehem, Pennsylvania. The company's integrated resorts comprise accommodations, gaming, entertainment and retail facilities, convention and exhibition facilities, celebrity chef restaurants, and other amenities.