Las Vegas Sands (LVS) Stock Declines on Weak November Nevada Gambling Revenue

NEW YORK (TheStreet) -- Las Vegas Sands (LVS) shares are down 1.12% to $58.13 in trading on Tuesday following the release of the lastest revenue numbers from Las Vegas and Nevada by the Nevada Gaming Control Board. 

State officials reported that gambling revenue in November was basically flat with the state's casinos bringing in $876 million during the month.

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Gambling revenues on the Las Vegas Strip were down 4% year over year to $508 million though downtown revenue was up 13% over last year to $43 million during the month.

The state said that it collected $47 million in taxes from that monthly revenue, a 5% decline from the same period last year.

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 growth in earnings per share, expanding profit margins, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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

  • LAS VEGAS SANDS CORP has improved earnings per share by 9.2% 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 ($3.52 versus $2.79).
  • 46.68% 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 19.01% is above that of the industry average.
  • Net operating cash flow has slightly increased to $1,226.65 million or 7.92% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -18.16%.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 7.2% when compared to the same quarter one year prior, going from $626.74 million to $671.71 million.
  • Even though the current debt-to-equity ratio is 1.38, 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 1.78 is high and demonstrates strong liquidity.
  • You can view the full analysis from the report here: LVS Ratings Report
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