There has been quite a bit of conversation surrounding Las Vegas Sands recently. With issues surrounding the Macau gaming district, no one seemed to know quite what to expect from the company's second quarter earnings. While earnings missed overall expectations, investors had a bit of a positive response; and while the stock has corrected a bit since, I think we're getting close to a strong uptrend that could be a profitable venture for binary option traders. Today, we'll talk about Las Vegas Sands Earnings and why I think a strong uptrend is coming soon. Finally, we'll chat about how binary options traders can take advantage of the trends. So, let's get right to it…
Las Vegas Sands Earnings
As mentioned above, Las Vegas Sands produced lighter than expected earnings. However, in reality, the report wasn't all that bad. Here's what we saw…
Earnings – In the quarter, the company generated net proceeds of $481.5 million; working out to $0.60 per share. This figure comes in just $0.01 lower than analyst expectations.
Revenue – Revenue also missed expectations. While analysts expected to see $2.97 billion in top-line revenue from the quarter, the company only produced $2.97 billion.
Nonetheless, investors had a positive reaction to the earnings report. I think the positive reaction had a lot to do with the comments that came from the company's CEO, Sheldon Adelson…
“Despite the current headwinds in the Macau market, we remain sharply focused on the consistent execution of our global growth strategy, which leverages the power of our unique convention-based integrated Resort business model…”
Essentially, while Macau is a bit of an issue, the company is maintaining strong earnings by focusing on its strong business model.
LVS Trading Chart Shows Signs Of An Upcoming Climb
Perhaps more importantly, a quick technical analysis shows the potential for strong gains in the near future. Look at the chart below…
As you can see from the chart above, there's a drastic climb on the day of earnings. From there, we've watched support remain relatively steady while resistance continues to fall. This creates a familiar shape in the trading chart…a flag. Flags tell traders that a breakout is coming soon. Since this is an upright flag, we know that it is bullish. Therefore, chances are that the upcoming breakout is going to be in the bullish direction.
How To Trade The Trend
Knowing that the flag is bullish tells us that chances are that a breakout in the bullish direction is coming. With that said, traders should keep an eye on the chart. When the value of LVS breaks resistance, it's time to purchase call options as this event is likely to lead to an incredibly profitable bullish run.
What Do You Think?
Where do you think Las Vegas Sands is headed and why? Let us know in the comments below.