NEW YORK (TheStreet) -- Las Vegas Sands'
(LVS) second-quarter earnings missed Wall Street forecasts but CEO Sheldon Adelson said he is "absolutely certain" of the casino company's future growth.
Sands reported earnings of 85 cents a share, below estimates of 90 cents. Earnings rose 30% from a year earlier; analysts were expecting growth of 37.5%.
The stock fell 2.5% in premarket trading to $71.93.
From the earnings report:
Adjusted earnings increased 30.8% to 85 cents a share
Net revenue increased 11.8% to $3.62 billion
The company paid dividends of 50 cents a share, an increase of 42.9%Consolidated adjusted property EBITDA rose 18.6% to $1.31 billion
If it wasn't for a "14-month" special bonus for non-management employees, EBITDA would have been $29 million higher and adjusted EPS would have risen by 3 cents, the company said. The World Cup this month and last month also meant that mass gambling, Sands' main revenue driver, fell in Macao.
"I have more than confidence, I am absolutely certain we will grow," Adelson said on the company's conference call. Sands said it expects investors to be much happier after they see the company's numbers from the summer, adding they shouldn't be concerned about an industry-wide slowdown. Sands' said it remains pleased with the bet it made 10 years ago to enter Macao. Sands is planning in late 2015 to open another resort in Macao, The Parisian Macao. It will have more than 3,000 rooms.
Sands dismissed a lawsuit from Asian American Entertainment Corp. over an "alleged breach of agreements" between the two companies while bidding for Macao gaming concessions. Bloomberg reported the news of the filing earlier this week.
"Using a different lawyer every time, AA has repeatedly filed lawsuits trying to take credit for that which they didn't do. U.S. courts have consistently rejected those efforts. LVS will respond to this latest version of the same meritless lawsuit in court," spokesman Ron Reese said.
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