Key Stats for Las Vegas Sands Stock
- Pre-Market Price change for Las Vegas Sands stock: -5%
- $LVS Stock Price as of Jul. 22: $45
- 52-Week High: $70
- $LVS Stock Price Target: $65
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What Happened?
Las Vegas Sands (LVS) stock is under pressure today after the company posted Q2 results that came in below what investors hoped for. The miss largely comes down to bad luck at the tables in Macau, plus a World Cup that pulled high-value gamblers away from both Macau and Singapore.
Las Vegas Sands posted adjusted earnings of $0.59 per share against the consensus call for $0.75 per share. Also, revenue came in at $3.15 billion versus the estimate of $3.31 billion.
In Macau, Sands China’s EBITDA landed at $430 million. That number would have been $517 million if VIP rolling hold had come in at expected levels. Instead, hold was just 1.35%, which is unusually low.
Rolling volume jumped 73% year over year, non-rolling drop rose 15%, and slot and ETG handle climbed 30%. Mass gross gaming revenue grew 8% year over year, twice the pace of the broader Macau market’s 4% growth. VIP rolling chip volume share also hit a market-leading 26% for the quarter.
Singapore told a similar story. Marina Bay Sands generated $689 million in EBITDA, or $652 million after adjusting for favorable hold.
Mass gaming revenue there grew 5% compared to last year, even with softer seasonal demand and fewer high-value visitors during the World Cup.
On the shareholder side, Las Vegas Sands stock buyers got some good news. The company repurchased $787 million of shares this quarter and paid its regular $ 0.30-per-share dividend.
The board also boosted the buyback authorization to $6 billion, and the company has now bought back over 16% of its outstanding shares over the last 11 quarters.
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What the Market Is Telling Us About Las Vegas Sands Stock
The drop in Las Vegas Sands stock today shows investors are focused on the headline miss, even though management pointed to World Cup disruption and unlucky hold percentages as the main culprits rather than weaker demand.
Management said this quarter doesn’t reflect the true earning power of its properties. They pointed to rising volumes across every gaming segment in Macau as proof that the business itself is healthy, even if the reported profit numbers looked soft.
Singapore also continues to benefit from strong high-value tourism trends, even after a temporary dip tied to the World Cup.
Still, rising operating expenses from added table hours and customer service investments are a real short-term drag on margins.
Competition in Macau’s premium segment remains intense too, meaning the company will keep spending heavily to stay ahead.
For now, the sell-off in Las Vegas Sands stock looks more tied to hold volatility and one-time World Cup effects than to any lasting shift in demand. Investors will be watching next quarter closely to see if results normalize as expected.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
