Las Vegas Sands Stock Tops the S&P 500. The Gambling Industry Is Having a Wild Day.

Strength in both Macau and Singapore helped drive the strong quarter. (Billy H.C. Kwok/Bloomberg)

Key Points

• Las Vegas Sands’ third-quarter adjusted earnings of 78 cents a share and revenue of $3.33 billion exceed estimates.
• Marina Bay Sands in Singapore saw revenue grow 56% year over year, driven by renovations and increased demand.
• Las Vegas Sands stock rose sharply following the strong earnings.

Las Vegas Sands was the top-performing stock in the S&P 500 Thursday after the casino operator reported quarterly earnings that exceeded Wall Street’s expectations.

The company posted adjusted earnings of 78 cents a share for the third quarter, surpassing analysts’ consensus of 62 cents. Revenue totaled $3.33 billion, above Wall Street’s call for $3.05 billion and up 24% from the prior year.

Las Vegas Sands stock climbed 12% Thursday to $56.69, putting it on pace for its largest single-day gain since Sept. 26, 2022, according to Dow Jones Market Data. The S&P 500 was up 0.5%.

The company had a particularly strong quarter at its Marina Bay Sands resort in Singapore, where revenue grew 56% from a year before. The results at Marina Bay were driven by a boost in demand following renovations, growth in side bets, and more efficient marketing, noted Ben Chaiken of Mizuho Securities.

The firm reiterated an Outperform rating for Las Vegas Sands stock and boosted its price target to $63 from $56.

A solid quarter in Macau also helped, said Seaport Research Partners analyst Vitaly Umansky. The company achieved around a one percentage-point gain in market share in the so-called Las Vegas of Asia, in line with Seaport’s expectations. The firm maintained a Buy rating and lifted its price target to $66 from $64.

Other casino stocks were also on the rise Thursday. MGM Resorts International climbed 1.4%, Caesars Entertainment rose 1.9%, and Wynn Resorts jumped 5.3%.

The strong session for casino operators came on an otherwise jarring day in the gambling world. Authorities indicted more than 30 people Thursday, including Portland Trail Blazers coach Chauncey Billups and Miami Heat player Terry Rozier, as part of federal investigations into illegal sports gambling and rigged poker games. The games were backed by members of the Sicilian-American crime families, the indictments alleged.

Write to Nate Wolf at nate.wolf@barrons.com