Las Vegas Sands Corp. Readies for Q4 Earnings Amid Mixed Performance
Valued at a market cap of $37.2 billion, Las Vegas Sands Corp. (LVS) excels in developing, owning, and operating multi-use integrated resorts mainly in the U.S. and Asia. Based in Las Vegas, Nevada, this company’s resorts offer accommodations, gaming, entertainment options, retail malls, convention facilities, and gourmet restaurants. LVS is set to announce its fiscal Q4 earnings results on Wednesday, Jan. 22.
Analysts Predict Modest Q4 Profit Growth
In anticipation of the upcoming announcement, analysts project the company to report a profit of $0.59 per share, indicating a 3.5% increase from $0.57 per share in the same quarter last year. Despite this positive outlook, LVS has only surpassed Wall Street’s earnings estimates in one of the last four quarters, missing expectations in the other three. For Q3, LVS fell short by 20% compared to the consensus EPS estimate.
Looking Ahead: Strong Earnings Growth Expected
For fiscal 2024, analysts forecast that LVS will achieve an EPS of $2.33, a substantial 23.3% increase from $1.89 in fiscal 2023. The growth pattern is expected to continue into fiscal 2025, with projections showing a 16.7% increase in EPS, reaching $2.72.
Stock Underperformance Relative to the Market
Over the past 52 weeks, LVS shares have experienced only a marginal increase, significantly lagging behind the S&P 500 Index’s rise of 23.3% and the Consumer Discretionary Select Sector SPDR Fund’s 25.5% return during the same timeframe.
Shares of LVS dropped 1.4% on Oct. 23 due to disappointing Q3 results, with adjusted EPS at $0.44 and quarterly revenue totaling $2.7 billion. Key challenges included lower revenue in Singapore, where Marina Bay Sands revenue fell to $919 million, alongside disruptions from ongoing development at the Londoner in Macao, which reported a revenue decline to $460 million. This weaker performance from critical locations overshadowed any optimism regarding future growth and recovery in Asian markets.
Investor Confidence Rises Following Positive Developments
Despite previous setbacks, LVS shares saw a 3.2% increase on Nov. 29 after China relaxed visa requirements for Shenzhen and Zhuhai residents. This change is expected to enhance tourism and gaming revenue in Macau, potentially uplifting investor sentiment towards LVS.
Analysts’ Ratings and Future Expectations
Wall Street analysts have a moderately optimistic view of Las Vegas Sands’ stock, giving it an overall “Moderate Buy” rating. Out of 15 analysts covering the stock, 10 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and four maintain a “Hold” rating. The average price target for LVS stands at $59.28, representing a 14.9% potential upside from current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. Information and data in this article are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
