Las Vegas Sands shares are tanking today after the company reported disappointing revenues for Q4 overnight.
Revenues for China Sands, its Macau subsidiary, increased 13.1% year-over-year. EBITDA for Las Vegas Sand’s casinos in Macau increased 35.7% in Q4 to $341.2 million, according to the earnings release.
So why the big disappointment? Investors were expecting a blowout quarter from Macau, and it didn’t deliver.
Q4 revenues at the Four Seasons Macau and Plaza Casino declined 6.1% year-over-year, which may be a source of concern.
As a result of these disappointing revenue numbers, the stock has tanked today and is down over 6%.
But does that make sense in the long-run?
From J.P. Morgan analyst Joseph Greff (via The Street):
We think last night’s 6% decline in aftermarket is a near-term buying opportunity in front of a 2011 Singapore ramp in all segments, 2011 Macau market strength and a catalyst in Chinese New Year,
Still, there may be some doubt creeping in to the Macau story.