Las Vegas Sands Earnings Miss Estimates on Slump in Asia
Las Vegas Sands Corp. (LVS), the casino company controlled by billionaire Sheldon Adelson, said second- quarter profit fell 34 percent, missing analysts’ estimates as winnings in Asia and Nevada slumped.
Net income shrank to $240.6 million, or 29 cents a share, from $367.6 million, or 45 cents a year earlier, the Las Vegas- based company said today in a statement. Excluding items, profit of 44 cents missed the 60-cent average of 24 analysts’ estimates compiled by Bloomberg.
Industry growth in Macau, where Sands owns four casinos, has slowed this year, and may finish 2012 up as little as 10 percent, down from the 42 percent gain in 2011 and 58 percent the previous year, according to a report out today by Fitch Ratings. The firm cited slower economic growth in China and interruptions to ferry service from a July typhoon.
Sales for the quarter rose 10 percent to $2.58 billion, below analysts’ projections of $2.77 billion. In the statement, Adelson also cited higher accounts receivable in Singapore and elevated legal costs.
Las Vegas Sands fell 4.3 percent to $35.91 in extended trading. The stock lost 2.6 percent to $37.38 at the close in New York and has declined 13 percent this year.
Results included the new Sands Cotai Central resort, which opened in April. It is the company’s fourth casino hotel in Macau, the only place in China where gambling is legal.
The company and its majority-owned subsidiary, Sands China Ltd. (1928), will soon unveil artist renderings of another property there after the Macau government extended a deadline to complete the project until April 2016, Adelson said July 18.
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