Dave has extensive experience writing about stocks, personal finance, and investing. Before joining ValueWalk, Dave was a writer/analyst at The Motley Fool, where he mainly covered financials, consumer goods, market movers, and technology stocks. Dave...
Read Full BioLas Vegas Sands (NASDAQ:LVS) reported blowout earnings in the second quarter, resulting in a stock price surge of about 7.5% shortly after the opening bell Thursday.
The leading casino operator posted $3.18 billion in overall revenue, easily beating the Wall Street estimate of $2.84 billion. Its Singapore property, Marina Bay Sands, accounted for most of the outperformance.
Net income jumped 30.6% to $461 million, or 66 cents per share, which again topped analysts’ estimates. On an adjusted basis, earnings looked even better. At 79 cents per share, adjusted earnings beat the estimated 53 cents by nearly 50%.
Singapore property steals the show
Las Vegas Sands, despite its name, no longer owns any hotels in Las Vegas. It got its start in Sin City but has since shifted its operations entirely to Asia. Its base is now in Macau and Singapore, where the casino business has been soaring, while Las Vegas’s performance has been spotty in recent quarters.
In June, according to the Macau Gaming Inspection and Coordination Bureau, casino gaming revenue was up 19% year-over-year.
The second quarter of 2025 was modestly positive for Sands’ Macau properties, which saw revenue increase 2.5% to $1.8 billion. However, it was the Singapore casino, Marina Bay, that led the way.
The Marina Bay Sands generated about $1.4 billion in revenue in the quarter, a 40% gain year-over-year. EBITDA at the Marina Bay Sands was $768 million in the quarter, a 50% increase compared to the same quarter a year ago. EBITDA across the Macau properties was flat in comparison.
“We spent the last couple of years reinvesting there significantly, not only in the physical product but also in the service levels and the experience we can provide to people,” Patrick Dumont, president and COO, said of Singapore on the Q2 earnings call, as transcribed by Investing.com.
“And the type of customer we have coming through the property and the nature of where Singapore sits today, the growing economies of wealth creation in Southeast Asia, it’s all working.”
That investment in Singapore continues as the company broke ground last week on an $8 billion luxury resort. The new property will feature 570 suites, gaming, meeting and convention space, dining, spa and wellness amenities, and a 15,000-seat arena.
Analysts raise price targets
Las Vegas Sands stock jumped about 7.5% in early trading on Thursday to over $52 per share. The stock has returned roughly 2% year-to-date and about 30% over the past 12 months.
Wall Street analysts were impressed with the Q2 results and gave Las Vegas Sands a slew of price target upgrades. The biggest boosts came from those who were more bearish to begin with, so there is greater consensus on the price target than there was previously.
- Susequhanna: $62 (up $4 from $58)
- Barclays: $58 (up $1 from $57)
- Bank of America: $58 (up $5.50 from $52.50)
- JP Morgan: $56 (up $9 from $47)
Las Vegas Sands now has a median price target of $56 per share among the 22 analysts that cover it. That would suggest a 15% return over the next 12 months.
Churchill Downs: Another Big Mover in the Gambling Sector
Churchill Downs (NASDAQ:CHDN) stock has been another one to watch, up roughly 7% on Thursday. Like Las Vegas Sands, its gains were fueled by stronger-than-expected results in Q2.
The Louisville-based racetrack owner reported record revenue of $934.4 million in the quarter, topping estimates of $921.6 million. Net income increased 4% to $217 million, or $2.99 per share. Adjusted earnings were $3.10 per share, which surpassed estimates of $3.01 per share. The company also generated a record $450.9 million in adjusted EBITDA, up 1% year-over-year.
The Kentucky Derby, hosted at its namesake property, reported record handle and television viewership.
In addition, Churchill Downs announced a $500 million share repurchase program. Among other highlights, it acquired a 90% stake in Casino Salem in New Hampshire, where it intends to develop a $180 million charitable gaming, entertainment, and dining destination. Further, it announced a deal with NBC Sports to run the Kentucky Oaks race in primetime on May 1, 2026.
Despite this week’s gains, Churchill Downs stock is down about 13% year-to-date to roughly $117 per share. Nonetheless, it received price target boosts on Wednesday from Mizuho to $136 per share and Susquehanna to $126 per share. It now has a median price target of $134.50, equivalent to a 23% return over the current price.
Image Credit: Basile Morin via Wikimedia Commons (license)
