NEW YORK (TheStreet) -- Las Vegas Sands (LVS) shares are down -5.3% to $68.03 on Wednesday following reports that casino revenue from the Macau Chinese gambling destination was down 3.6% in July.
Deutsche Bank (DB) analyst Carlo Santarelli today lowered his industry wide third quarter general revenue forecast for the region to -0.9%, or $11.1 billion, from his previous forecast of a 3% rise. Santarelli also expects VIP revenue to fall more than 10% to $6.5 billion.
Wynn Resorts (WYNN) and MGM Resorts (MGM) are also down -4.3% and -3.4%, respectively, in trading today following the note.
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 a few notable strengths, 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 revenue growth, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.9%. Since the same quarter one year prior, revenues rose by 11.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 29.68% and other important driving factors, this stock has surged by 32.89% 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 29.7% 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 ($3.76 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 26.7% when compared to the same quarter one year prior, rising from $529.75 million to $671.43 million.
- You can view the full analysis from the report here: LVS Ratings Report