Las Vegas Sands (NYSE:LVS) is scheduled to announce its Q2 earnings on 25 July. Last quarter, LVS, posted strong Q1 results with about 30% increase in revenue driven by strong performance by its Macau and Singapore property portfolio. With slowdown of growth in China in last quarter, investors and analysts are eagerly awaiting to see the impact on LVS’ results.  We have a $64 price estimate for Las Vegas Sands, implying a premium to the current market price.
We briefly discuss the key trends that we will be watching in the upcoming quarterly earnings:
- Will positive signals from Macau’s casino industry impact MGM and Wynn Resorts?
- How Mass-Market Gaming Is Becoming More Significant Revenue Contributor To Las Vegas Sands’ Macau Casino Operations?
- Macau Revenue & EBITDA Contribution For Las Vegas Sands In The 5 Years Preceeding Our 2016 Estimates?
- Trefis Charts: Las Vegas Sands’ Singapore VIP vs Mass-Market Gaming Growth
- Trefis Charts: Las Vegas Sands’ Marina Bay Sands Hotel RevPAR Growth Compared To Resort World Sentosa
- Trefis Charts: Las Vegas Sands’ Singapore Hotel RevPAR Growth
Macau property portfolio
Macau holds strategic importance for LVS as it contributes more than 50% to its revenues. According to our estimates, Macau contributes about 50% to LVS’ current stock valuation. The Macau gaming industry thrives on the well being of the Chinese economy. However, in May, it witnessed a mere 7.3% yoy increase, its slowest increase in the last 3 years. 
The majority of tourists visiting Macau are from Mainland China. We are curious to see the impact on LVS’ VIP and Mass table games turnover amidst reports of visa restrictions in China and slow down in the Chinese economy. Increasing disposable income in China’s growing middle class population and a growing number of high net worth individuals have been the key factors behind the growth of the VIP and mass market turnover in Macau.
Future expansion plans
LVS is eagerly exploring opportunities in other emerging regions, especially India, Japan, Korea, Taiwan and Vietnam. We are interested in knowing management’s future expansion policies and which regions they plan to target for expansion. Further details about the Spanish project would be helpful in gauging the scope of the project. LVS has already initiated work on Europa Vegas, an integrated resort in Spain, which will give it access to European customers.Notes:
- See: China Q2 growth slows to 3-year low of 7.6%, The Jakarta Post [↩]
- See: Casino Stocks Stumble as Macau Gaming Revenues in May See Slowest Rate of Growth in Almost 3 Years, Market Watch [↩]