
Will Las Vegas Sands (LVS) Stock Be Hurt by Macau Revenue?
NEW YORK (TheStreet) -- Shares of Las Vegas Sands (LVS) - Get Report are up 0.48% to $43.70 in mid-afternoon trading on Friday even though Macau gambling revenue slumped 8.5% in June, marking the 25th straight monthly decline by the world's largest casino hub, Reuters reports.
Revenue in June was 15.9 billion patacas, or $1.99 billion, according to government data released today. The results matched analysts' projections for a decline of 5% to 12%, Reuters noted.
Monthly revenues have fallen by half in the past two years and have reached lows not seen in the last five years.
The Las Vegas-based company operates casinos and resorts. The company has several properties in Macau, such as the Sands Macao and the Venetian Macao.
Macau is the only place in China where casino gambling is legal. The territory has been impacted by Beijing's anti-corruption campaign, aimed at officials and politically linked businessmen, Reuters added.
The results come as wealthy gamblers continued to stay away from Macau, according to Reuters.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures.
But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: LVS










