For the full year Sands reported adjusted EPS of $2.90 on revenues of $13.77 billion, compared with 2012 EPS of $2.14 on revenues of $11.13 billion. The consensus estimate called for EPS of $3.01 on revenues of $13.83.
The company’s quarterly and annual revenues were all-time highs, but still short of consensus estimates. Higher operating income was driven by Sands’ Macao operations. In fact, Macao gets the credit for well over two-thirds of the company’s revenues Las Vegas operations contributed slightly more than 10% to total revenues in the fourth quarter.
The Sands did not offer 2014 guidance, but the consensus estimates call for first quarter EPS of $0.88 on revenues of $3.72 billion. For the full year analysts estimate EPS of $3.70 on revenues of $15.52.
The company’s CEO said:
In Macao, we delivered record financial results, with strong growth and operating momentum reflected in every segment of our business. … We remain confident that our market-leading Cotai Strip properties, including our latest Integrated Resort on the Cotai Strip, the Parisian Macao, which is now under construction and is targeted to open in late 2015, will meaningfully enhance the appeal of Macao to business and leisure travelers and provide an outstanding platform for growth in the years ahead.
Like a good bank robber, Sands is going to Macao because that’s where the money is. But a note of caution was injected into the casino stocks when JPMorgan’s analysts last week cut MGM Resorts International Inc. (NYSE: MGM) to Neutral and recommended that investors slim down their positions in Macao casino owners like Sands, MGM, and Melco Crown Entertainment Ltd. (NASDAQ: MPEL). In the last five trading days, Sands stock has lost more than $8 a share and today’s weakish report will compound that loss tomorrow.
Shares are down about 3.5% in after-hours trading today at $71.33, in a 52-week range of $47.95 to $82.48. The consensus target price for the shares was around $84.40 before today’s report.
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