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Take A Gamble On Las Vegas Sands

|Includes: Las Vegas Sands Corp. (LVS)
By Jason Raznick

Las Vegas Sands (NYSE:LVS) reported earnings this morning that knocked the cover off the ball. After this report, investors might want to double down on Las Vegas Sands.

The casino operator and developer said it lost $4.7 million, or a penny a share. This compares to a 34 cent loss from last year. Ex-items, Las Vegas Sands earned 17 cents a share on revenues of $1.59 billion. This was far better than the 9 cents Wall Street expected on the same revenue number.

Breaking down the earnings report, one can see strong growth from abroad. Total net revenues for Sands China Ltd. skyrocketed 40.7% to $1.04 billion in the second quarter of 2010, when compared to the $738.9 million this division earned in the second quarter of 2009.

The Macao property, the Venetian Macao, also had another strong quarter. This property had an adjusted property EBITDA of $192.8 million for the second quarter of 2010 and a record 33.2% adjusted property EBITDA margin. The EBITDA margin ballooned, rising 840 basis points over the second quarter a year ago.

Las Vegas Sands seems to have averted death and is on the road to recovery. There are plenty of catalysts to come, such as the debate of online gambling here in the U.S., and strong continued growth from abroad. I would look to add shares of Las Vegas Sands on a pullback.

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