Asian growth buoys Las Vegas Sands
Macau and Singapore were the major revenue contributors to the company's fourth-quarter results.
The casino operator's Macau and Singapore properties were major contributors to this impressive revenue growth. The company also reported a 58% increase in earnings before interest, taxes, depreciation and amortization for 2011, driven by higher margin table and slots businesses.
LVS competes with Wynn Resorts (WYNN), MGM Resorts International (MGM), Caesars Entertainment (CZR) and Genting Singapore.
We have adjusted our estimates for LVS higher in accordance with the 2011 numbers. The revenue from convention, retail and other divisions were higher than we expected. We have updated our numbers to incorporate these changes and revised our price estimate for Las Vegas Sands to $57, implying a premium to the current market price.
The jewels: Macau and Singapore
Las Vegas Sands has significant presence in Macau, operating the Venetian Macao, the Sands Macao and the Four Seasons Hotel. According to chairman Sheldon Adelson, the company's gross gaming market share in Macau grew to 19% in January from 15% a year earlier.
In April, LVS plans to open the first phase of Sands Cotai Central, located at a prime Macao location directly across from The Venetian Macao and the Four Seasons Hotel Macao. At completion, it is expected to have 6,400 rooms.
Las Vegas Sands and Genting Singapore have a duopoly in the casino industry in Singapore. LVS' Singapore property has seen record growth since its inception in April 2010. It reported $2.9 billion in revenues in 2011, a 131% increase, and continues to be a strategic growth driver for the company.
Exploring new opportunities in Asia
In the earnings conference call, Adelson asserted that LVS is exploring opportunities in Japan, Korea, Taiwan and Vietnam. We are optimistic about the company's expansion plans within the U.S. and internationally. Under Adelson's leadership, LVS would make a strong strategic move to diversify operations further.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The push is on for undervalued, cash-rich technology companies to return more money to investors. And there's still room for dividend growth.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.