SUPERNEWS

Equities

Sands' Sales Up 40%, Beats Estimates Amid Macau Rebound

Las Vegas Sands beats Q1 expectations with Macau recovery and Singapore gains, despite mixed market reactions.

By Athena Xu

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4/17, 17:29 EDT
Alcoa Corporation
Equifax, Inc.
Las Vegas Sands Corp.
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Key Takeaway

  • Las Vegas Sands Corp. reports a 40% sales increase to $2.96 billion and adjusted earnings of 75 cents/share, beating estimates.
  • Despite positive earnings, Sands' stock fell by 2.5% in after-hours trading, reflecting mixed market reactions to Macau's recovery.
  • The broader S&P 500 Index dropped for the fourth session amid varied corporate earnings impacts across sectors.

Macau and Singapore Drive Growth

Las Vegas Sands Corp. has reported a significant uptick in its first-quarter sales and profit, surpassing analysts' expectations. This growth is largely attributed to the recovery of Macau's casino industry from the impacts of pandemic-related restrictions. The company announced a 40% increase in sales, reaching $2.96 billion, which exceeded the $2.93 billion average estimate compiled by Bloomberg. Adjusted earnings also saw a rise, hitting 75 cents a share, which is ahead of the Wall Street projections of 60 cents. Specifically, revenue from the company's five Macau casinos surged by 42% during the quarter, a period highlighted by the popular Chinese New Year holiday. Additionally, sales in Singapore, where Sands owns a single casino, rose by 37%.

Share Buyback and Market Reaction

Amidst this financial growth, Las Vegas Sands, under the control of the family of the late founder Sheldon Adelson, undertook a significant share buyback, repurchasing $450 million of its shares during the quarter. However, despite these positive earnings and sales figures, Las Vegas Sands' stock experienced a 2.5% decline in after-hours trading. This drop reflects the market's mixed reaction, particularly focusing on the Macau performance which, despite growth, fell short of some Wall Street expectations. This scenario underscores the challenges and uncertainties still present in the global tourism and gaming sectors.

Mixed Corporate Earnings Impact

The broader market context during this period shows the S&P 500 Index falling for the fourth consecutive session, with a 0.6% drop to close at 5,022.21 on Wednesday. This trend was primarily driven by a downturn in the tech sector, although utilities managed to post gains. The after-market hours saw varied performances among major companies, reflecting the diverse impacts of their quarterly earnings reports. Alcoa (AA) shares rose by 3% post-earnings, showcasing strong EBITDA figures that exceeded expectations. In contrast, Equifax (EFX) saw a 7% decline in its share price after announcing second-quarter forecasts for adjusted EPS and revenue that disappointed the market. This mixed corporate earnings landscape highlights the varied challenges and opportunities facing different sectors.