Las Vegas Sands Q2 earnings seen down 28 percent

Las Vegas Sands will be the first of the six operators in Macau to report Q2 earnings on Wednesday, with analysts expecting a drop of about 28 percent in net profit from the year earlier.

Earnings per share are expected to be about $0.61, down from $0.85 cents a year earlier, while revenue is seen falling just over 17 percent to $3 billion, according to Thomson Reuters’ estimates.

EBITDA is forecast at about $967.8 billion, according to the FactSet consensus.

Union Gaming says total gross gaming revenue at the Macau properties is likely to have shown a 31.6 percent dip in the second quarter, making it the top performer in the territory during the period.

“Being as Macau revenue trends are largely known, the real challenge for LVS in Macau is managing margin. While we believe that LVS has been disciplined in controlling its level of reinvestment, the company faces challenges around maintaining its Macanese labor force and lower overall hotel occupancy,” the report said.

According to Zacks, LVS results have fallen short of expectations for the past four quarters. Analysts will also be closely watching the levels of hotel occupancy at the Macau properties as well as how hard its extensive retail portfolio has been hit by the shrinking VIP market.

LVS is scheduled to post results after the U.S. market close.