Why Las Vegas Sands (LVS) Stock Is Down Today

NEW YORK (TheStreet) -- Las Vegas Sands  (LVS) fell on Monday amid reports that Macau casino revenue had dropped thus far in April.

Revenue at Macau casinos is approximately MOP 900 million to 950 million, down 17% to 21% from MOP 1.114 billion in the first six days of March, according to Wells Fargo. The firm expects Macau's April gaming revenue growth in the low to mid-teens.

"Our Q2 Macau estimates are based on 15.5% yr/yr growth for April and Q2 market growth of 14.2%, down from 19.8% growth in Q1," Wells Fargo said in a statement.

As a result, stocks tied to Macau dipped on Monday. Las Vegas Sands dropped 2.95% to $76 at 10:55 a.m.

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TheStreet Ratings team rates LAS VEGAS SANDS CORP as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate LAS VEGAS SANDS CORP (LVS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 18.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 32.07% and other important driving factors, this stock has surged by 51.47% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LVS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • LAS VEGAS SANDS CORP has improved earnings per share by 32.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LAS VEGAS SANDS CORP increased its bottom line by earning $2.79 versus $1.85 in the prior year. This year, the market expects an improvement in earnings ($3.78 versus $2.79).
  • 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 32.8% when compared to the same quarter one year prior, rising from $434.78 million to $577.54 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.
  • You can view the full analysis from the report here: LVS Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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