CHICAGO – Las Vegas Sands Corp. (LVS) on Tuesday said fourth-quarter profit rose sharply, topping estimates, as revenue doubled at its casinos in Las Vegas and Macau, the island off the southeast coast of China.
The company, which went public in December, said net income jumped to $69.3 million, or 21 cents a share, from $7.7 million, or 2 cents a share, a year earlier.
Despite the stronger-than-expected results, shares of Las Vegas Sands (search) shed $2.30, or 4.62 percent, to $47.50 on the New York Stock Exchange.
Calling the outcome positive, William Lerner, analyst at Prudential Equities Group, said the brokerage maintained an "overweight" rating on the shares. He added, however, that there are some risks external to the company that could weaken the stock price.
"Potential deterioration in disposable income and consumer spending could impact the company in Las Vegas and Macau," Lerner wrote in a research note. "Air-based terror activity could have an impact on its Las Vegas operations as well as the benefit of cross marketing from Asia to Las Vegas."
Revenue rose to $347.6 million from $173.4 million, helped by more business at its Venetian Casino Resort (search) in Las Vegas and its Sands Macao Casino (search), which opened last year.
Excluding some items, the company reported earnings of 19 cents a share. Analysts, on average, expected Sands to post a profit of 15 cents share, according to Reuters Estimates.
Among its current projects, the company is developing the Palazzo Casino Resort, which will be connected to the Venetian in Las Vegas, and the Macao Venetian Casino Resort in Macau.