Why Las Vegas Sands Investors Hit the Jackpot Today

On Thursday, the coins were gushing out of the slot machine that is Las Vegas Sands (NYSE: LVS) stock. The storied casino resort operator scored a more than 12% gain in its share price on the back of a well-received third-quarter earnings report. That rise was significantly steeper than the S&P 500 index's performance; the bellwether stock market indicator increased only by 0.6%.

Major winnings

Las Vegas Sands drew the curtain on its quarterly figures just after market close on Wednesday. It earned net revenue of $3.3 billion, which was a robust 24% improvement over the same period of 2024. Its net income not in accordance with generally accepted accounting principles (GAAP) -- adjusted net profit, in other words -- increased by 66% to $536 million, or $0.78 per share.

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With those numbers, Las Vegas Sands crushed the consensus analyst estimates. These anticipated less than $3.1 billion on the top line and only $0.61 per share for adjusted net income.

Despite its name, the company no longer operates casinos in Las Vegas, instead choosing to concentrate on Asian gaming markets Macao and Singapore. Of the six properties it runs on the continent, The Londoner Macao and Marina Bay Sands did the best in the quarter. The former saw net revenue growth of 49% (to $686 million), while the latter's top line rose by 56% to over $1.4 billion.

The Asian future

Given the recent liveliness of those markets, Las Vegas seems to have made the right choice to shift its focus across the Pacific Ocean. It's anticipating continued growth in Asian travel which, if channeled to a sufficient degree to Macao and Singapore, should help the fundamentals keep rising.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.