Las Vegas Sands Stock Is Rising on Strong Earnings

Las Vegas Sands reported better-than-expected earnings and revenue in the second quarter. (Billy H.C. Kwok/Bloomberg)

Shares of Las Vegas Sands continued their ascent Thursday after the hotel and casino operator logged a strong second quarter, but analysts cautioned there is more to the Macau growth story than meets the eye.

Shortly after the closing bell Wednesday, Las Vegas Sands reported adjusted earnings of 79 cents a share on net revenue of $3.18 billion, surpassing analysts’ calls for earnings of 53 cents a share on $2.84 billion, according to FactSet.

In the earnings release, CEO Robert Goldstein pointed to ongoing opportunities for “industry-leading growth in both Macau and Singapore,” two markets in which the company recently finished capital-investment programs.

Mizuho analysts raised their price target on Las Vegas Sands stock to $56 from $47 on Thursday and reiterated an Outperform rating. The firm noted that Macau market share improved slightly from quarter to quarter, largely on the back of the Londoner resort, while cautioning that “the narrative in Macau could be somewhat underwhelming given large moves in the stock recently.”

Meanwhile, Marina Bay Sands in Singapore “experienced a materially better quarter than expected.” In Mizuho’s view, the Street wasn’t expecting a return on investment on recent renovations, “which are resonating with premium players around the world.”

Las Vegas Sands stock climbed 4.1% to $50.68 on Thursday, while the S&P 500 was up 0.1%. Shares of peers were trading mixed. Wynn Resorts rose 1.7%, while MGM Resorts International and Caesars Entertainment were in the red.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com