Story updated at 9:50 am to reflect market activity.
Las Vegas Sands fell -1.3% to $72.83 in morning trading.
The firm also lowered its EPS estimates for the company, saying that Macau is falling short of expectations.
Analyst Joseph Greff wrote, "Its Macau results, broadly, were below what we would characterize as fairly low investor expectations, with VIP-hold-normalized adjusted property level EBITDAR margins lower than expected on (1) an unexpected and sizable bonus accrual expenses (only half non-recurring, as these quarterly expenses will continue through 2016 in an effort to retain employees as new competitive Cotai supply opens), (2) an unfavorable mass mix shift, with surprisingly lower premium mass margins (related to competitive pressures), and (3) lower than normal premium mass hold."
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Separately, 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, expanding profit margins, good cash flow from operations and solid stock price performance. 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 7.3%. Since the same quarter one year prior, revenues rose by 21.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 37.68% and other important driving factors, this stock has surged by 40.97% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- LAS VEGAS SANDS CORP has improved earnings per share by 37.7% 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 ($3.88 versus $2.79).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 35.7% when compared to the same quarter one year prior, rising from $571.96 million to $776.19 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, LAS VEGAS SANDS CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: LVS Ratings Report