How To Trade Las Vegas Sands Earnings Today (LVS)

Las Vegas Sands

is a company that has seen tremendous growth over the past year, but as it is set to release earnings today post-market, investors should tread carefully if considering an investment. Starting around $15 a share in early 2010 and close to $50 presently, it is expected to report a much higher earnings-per-share this year over last year. Analysts expect EPS of $0.39 per share ($0.03 on year ago) and revenues of $2.07 billion, which almost doubles last year's sales of $1.28 billion. Las Vegas Sands also announced a $2.50 dividend on its outstanding 10% Series A Cumulative Perpetual Preferred Stock today, which may be another indication that its earnings will be favorable. While investors may be giddy at the thought of investing in such a well-performing stock, it did have its low points during the recession, dropping from the $130 range to $2 in 2009 as real estate prices plummeted. Since then, it has rebounded, but nowhere near pre-recession highs. It is no doubt that Las Vegas Sands experienced an enormous drop in stock price as the real estate bubble burst, but perhaps Las Vegas Sands is still on the rebound and has room to grow. Because Las Vegas Sands is expected to produce impressive earnings, there is a significant amount of pressure building and if it potentially disappoints, its stock price could suffer a large short-term drop. When expectations are high, the stock price has a lot to lose if it does not match or exceed the estimates. It may be prudent to wait until the earnings announcement and allow for the market to react before taking a stake, long or short in Las Vegas Sands. Neither Benzinga nor its staff recommends that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.