Las Vegas Sands Falls After Missing Second-Quarter Estimates
Las Vegas Sands Falls After Missing Second-Quarter Estimates
(Bloomberg) -- Las Vegas Sands Corp., the big casino operator, fell in late trading after reporting second-quarter results that trailed Wall Street estimates, hurt by continued travel restrictions in Macau and Singapore.
Adjusted property earnings came to $244 million, the company said Wednesday, short of the $290.6 million average of estimates compiled by Consensus Metrix. The adjusted loss per share totaled 26 cents, larger than the 17 cents analysts forecast.
Sands is trying to bounce back from pandemic-related travel restrictions that remain in place in its two key markets: Macau and Singapore. The company agreed in March to sell its Las Vegas properties for $6.25 billion, concentrating its operations in Asia.
Revenue for the quarter soared to $1.17 billion, compared with $62 million a year earlier. But that missed estimates of $1.37 billion.
Shares of Sands fell as much as 3.8% to $47.55 in extended trading before paring the loss somewhat. The stock was down 17% this year through the close of regular trading Wednesday in New York.
On a conference call with investors, Sands executives said they believe business in Macau would be stronger in the second half of this year, while a return to normal volume in Singapore was harder to predict.
Sands President Patrick Dumont shed some light on the company’s plans to enter the online gambling segment. He said the company would focus on being a supplier to other online gaming companies and make small acquisitions. He said Sands is unlikely to make any billion-dollar deals. “I don’t think we’re going to buy our way into a business,” he said.
Chief Executive Officer Rob Goldstein said he also sees potential to build large, land-based casinos in U.S. states, such as Texas and Florida, where the company is backing ballot initiatives next year that could allow such expansion.
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