Looking At Post-Earnings Stock Movement: Las Vegas Sands Corp. (NYSE:LVS)

Las Vegas Sands Corp. (NYSE:LVS) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $0.45 per share on revenue of $2.72B. Analysts had been modeling earning per share of $0.63 with $2.88B in revenue.

Las Vegas Sands Corp. (NYSE:LVS) reported financial results for the quarter ended March 31, 2016.

First Quarter Overview

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, “The operating environment in Macao remained challenging during the quarter; but we do see signs of stabilization, particularly in the mass market. Our focus on the higher margin mass and non-gaming segments and the geographic diversification of our cash flows enabled us to once again deliver in excess of one billion U.S. dollars of hold-normalized adjusted property EBITDA during the quarter.  We remain intensely focused on the consistent execution of our proven global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model.

“Our convention-based Integrated Resort business model continues to appeal to the broadest set of customers, generate the most diversified set of cash flows and deliver the industry’s highest revenue and profit from non-gaming segments, while bringing unsurpassed economic and diversification benefits to the regions in which we operate.  We remain confident in our ability to both further extend our global leadership position and deliver strong growth in the future.

Company-Wide Operating Results

Net revenue for the first quarter of 2016 decreased 9.8% to $2.72 billion, compared to $3.01 billion in the first quarter of 2015. Consolidated adjusted property EBITDA of $917.6 million decreased 12.7% in the first quarter of 2016, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA increased 0.9% to $1.03 billion in the first quarter of 2016.

On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the first quarter of 2016 decreased 17.6% to $585.6 million, compared to $711.1 million in the first quarter of 2015.  The decrease in operating income was principally due to softer results across the company’s Macao property portfolio and lower win percentage on Rolling Chip play at Marina Bay Sands in Singapore.

On a GAAP basis, net income attributable to Las Vegas Sands in the first quarter of 2016 decreased 37.5% to $320.2 million, compared to $511.9 million in the first quarter of 2015, while diluted earnings per share in the first quarter of 2016 decreased 37.5% to $0.40, compared to $0.64 in the prior-year quarter. The decrease in net income attributable to Las Vegas Sands reflected the decline in operating income described above as well as a $35.8 million mark-to-market loss on Singapore dollar forward contracts. This was partially offset by a $10.4 million decrease in net income attributable to noncontrolling interests.

Adjusted net income (see Note 1) decreased to $357.3 million, or $0.45 per diluted share, compared to $531.1 million, or $0.66 per diluted share, in the first quarter of 2015.

Las Vegas Sands Corp. earnings per share showed a decreasing trend of -29.9% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 262%.Analysts project EPS decline over the next 5 years at -3.69%. It has EPS annual growth over the past 5 fiscal years of 36.8% when sales grew 11.3. It reported -9.8% sales drop, and -37.2% EPS decline in the last quarter.

The stock is trading at $46.24, up 34.36% from 52-week low of $34.88. The stock trades down -16.46% from its peak of $57.77 and 13.54% above the consensus price target of $52.5. Its volume clocked up at 3.3 million shares which is lower than the average volume of 4.63 million shares. Its market capitalization currently stands at $36.70B.