Jefferies Comments On Las Vegas Sands Following Recent Earnings Release

Las Vegas Sands LVS reported 1Q11 revenue and adjusted EBITDA of $2,111.9M and $635.1M, respectively, compared to Jefferies estimates of $2,138.3M and $680.8M and consensus of $2,127.5M and $754.8M. The quarter's results were impacted primarily by a lower than expected performance and normal rolling chip hold percentage in Singapore and lower table hold percentage in Las Vegas. Jefferies is slightly adjusting its estimates to reflect current trends and its market outlook going forward. Jefferies 2Q11 consolidated forecast now calls for $2,111.1M in net revenues and $681.6M in adjusted EBITDA compared to prior expectations of $2,149.1M and $711.8M, respectively. For 2011, Jefferies anticipates net revenues of $8,671.4M with EBITDA of $2,701.8M. While the quarter reflected stronger than expected results in Macau, Singapore and Las Vegas were softer than expected on a hold-adjusted basis. Jefferies believes the regulatory overhang should limit the Street's willingness to give Las Vegas Sands the benefit of the doubt and view the results as bearish for the shares. Jefferies reiterates its HOLD rating LVS closed Tuesday at $45.87