Las Vegas Sands Plunges On Miss

Nov. 2.07 | About: Las Vegas (LVS)

Las Vegas Sands reported a significant miss late Thursday, which caused shares of the casino company to plunge as much as 14%. LVS said it swung a loss of $48.5 million ($-0.14/share) compared to a profit of $97.3 million ($0.27/share) last year. Excluding various charges, the company would have earned $0.12/share, still not close to the $0.31/share forecasters expected. Revenue increased to $694.3 million from $578.9 million one year ago, but also was short of the $783 million analysts' expected. The company blamed the disappointing numbers on higher operating costs, higher opening costs, and gamblers getting luckier than usually. Today's drop wipes away about $3.7 billion of CEO Sheldon Adelson's personal wealth. "This is the nature of the business we are in,'' Adelson said (full earnings call transcript). "Some quarters are good, some are not so good, but a quarter does not make a trend. There's nothing fundamental about it. It makes for a good opportunity for day traders and hedge funds. That's all it does." In midday trading Friday, Sand's shares traded down 11.3% to $111.11.

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