NEW YORK (TheStreet) -- Shares of Las Vegas Sands Corp. (LVS) are down by 0.53% to $54.75 in late afternoon trading on Wednesday, as data from China's Macau gambling district showed the gaming hub's March revenue declined for the tenth straight month.
Macau revenue for March was down 39%.
Revenue out of the only region in China where gambling is legal has been slipping since the country's government began its anti-corruption crackdown last year, which has kept many high stakes and VIP players away from the tables.
The revenue drop is the second worst on record, Reuters reports, adding that Macau earns more than 80% of government revenue from its 35 casinos, but in an annual policy address Macau's Chief Executive Fernando Chui called for greater diversification in the sector.
Before gaming licenses are renewed, beginning in 2020, the local government will begin this year conducting an assessment of casino operators Melco Crown Entertainment Ltd. undefined, Sands China Ltd., Wynn Macau Ltd. (WYNN) , SJM Holdings Ltd., MGM China Holdings Ltd. (MGM) , and Galaxy Entertainment Group Ltd. (GXYEY) to review how effectively the companies have incorporated non-gaming facilities into their resorts, Reuters said.
Separately, TheStreet Ratings team rates LAS VEGAS SANDS CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAS VEGAS SANDS CORP (LVS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Hotels, Restaurants & Leisure industry average. The net income increased by 24.9% when compared to the same quarter one year prior, going from $577.54 million to $721.31 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, LAS VEGAS SANDS CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- 47.92% is the gross profit margin for LAS VEGAS SANDS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.11% is above that of the industry average.
- Even though the current debt-to-equity ratio is 1.39, it is still below the industry average, suggesting that this level of debt is acceptable within the Hotels, Restaurants & Leisure industry. Despite the fact that LVS's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.85 is high and demonstrates strong liquidity.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.6%. Since the same quarter one year prior, revenues slightly dropped by 6.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: LVS Ratings Report