The Gory Details of Las Vegas Sands' Double Miss

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Las Vegas Sands (NYSE: LVS) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Las Vegas Sands missed estimates on revenue and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
Las Vegas Sands recorded revenue of $2.58 billion. The 18 analysts polled by S&P Capital IQ expected to see a top line of $2.79 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $2.35 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.44. The 22 earnings estimates compiled by S&P Capital IQ averaged $0.61 per share. GAAP EPS of $0.29 for Q2 were 36% lower than the prior-year quarter's $0.45 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 32.5%, 1,620 basis points worse than the prior-year quarter. Operating margin was 19.3%, 690 basis points worse than the prior-year quarter. Net margin was 9.3%, 820 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.04 billion. On the bottom line, the average EPS estimate is $0.69.

Next year's average estimate for revenue is $11.76 billion. The average EPS estimate is $2.68.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,795 members out of 2,113 rating the stock outperform, and 318 members rating it underperform. Among 445 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 375 give Las Vegas Sands a green thumbs-up, and 70 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Las Vegas Sands is outperform, with an average price target of $62.65.

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