Las Vegas Sands Reports Earnings Decline Amid Market Underperformance

Las Vegas Sands Corporation (LVS), with a market cap of $27.4 billion, is a prominent player in the integrated resort space, operating mainly in the U.S. and Asia. The company, headquartered in Las Vegas, owns three properties in the city, including The Venetian Casino and The Palazzo. Additionally, it manages several establishments in Macao, China, and one in Singapore.

Stock Performance Overview

In the past year, LVS has lagged behind the broader market. The stock has dropped 15.3%, while the S&P 500 Index ($SPX) has risen by 8.6%. Since the start of 2025, LVS shares have fallen 22.9%, in contrast to the 4.3% decline of the $SPX.

Furthermore, compared to the Consumer Discretionary Select Sector SPDR Fund (XLY), LVS has also underperformed, as the ETF has gained 11.5% while LVS suffered double-digit losses during the same period.

Q1 2025 Financial Results

On April 23, Las Vegas Sands released its Q1 2025 financial results. The company reported a revenue decline of 3.3% year-over-year to $2.86 billion, falling short of estimates, while net income decreased from $583 million to $408 million. Adjusted EPS stood at $0.59, which was slightly below the anticipated 60 cents. Macau operations struggled with revenue totaling $1.7 billion amid ongoing market share challenges. However, Singapore’s Marina Bay Sands performed well, generating $1.2 billion in revenue and $605 million in EBITDA, exceeding forecasts.

The company repurchased $450 million in shares and increased its buyback authorization to $2 billion, while also investing $379 million in capital expenditures. Following this announcement, LVS’s stock rose 6.5% in the subsequent trading session.

Analyst Expectations

For the fiscal year ending in December, analysts project an 8.8% increase in LVS’s adjusted EPS, bringing it to $2.47. However, the company’s history of earnings surprises has been disappointing, as it has not met consensus estimates in the last four quarters.

Analyst Ratings and Price Targets

Currently, LVS has a consensus “Moderate Buy” rating. Among 15 analysts covering the stock, 10 recommend a “Strong Buy,” and five suggest a “Hold.” Notably, this consensus is less optimistic than two months ago when there were 11 “Strong Buy” ratings.

On April 24, Barclays plc (BCS) adjusted its price target for Las Vegas Sands from $53 to $51, while maintaining an “Overweight” rating. The firm noted that Macau’s performance fell short of expectations, describing this as a downside surprise.

The mean price target of $52.60 indicates a potential 32.9% upside from LVS’s current levels, with the highest target at $63.50 suggesting an upside of 60.4%.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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