Las Vegas Sands Faces Challenges Amid Market Struggles
Based in Las Vegas, Nevada, Las Vegas Sands Corp. (LVS) ranks as a top global operator of integrated resorts, with a market cap of $36.5 billion. The company is known for offering excellent hospitality, entertainment, and gaming across its many properties in Asia and America, catering to millions of guests each year.
Stock Performance Falls Short in a Booming Market
Over the past year, LVS shares have notably lagged behind the overall market. The stock has gained 4.7%, while the S&P 500 Index ($SPX) has experienced a remarkable 36.8% surge. In 2024 alone, LVS has increased by 2.4%, while the SPX has risen by 25.7%.
Comparison with Consumer Discretionary Peers
Looking closer, LVS has notably underperformed against the Consumer Discretionary Select Sector SPDR Fund (XLY), which has provided returns of 20.3% year-to-date and impressive gains of 33% over the last 52 weeks.
Factors Weighing on Performance
The challenges faced by Las Vegas Sands stem from increased competition within the gaming industry and a slowing global economy. Additional concerns about regulatory changes and tariffs impacting international markets have also adversely affected the company’s stock performance.
Q3 Earnings Report Sparks Concerns
On October 23, LVS shares fell by 1.4% following disappointing Q3 earnings. The company reported an EPS of $0.44, missing the expected $0.55. Moreover, its revenue decreased 4% from the previous year to $2.68 billion, which also fell short of market consensus estimates of $2.79 billion.
Future Earnings Predictions and Analyst Ratings
For the current fiscal year, analysts predict that LVS’s EPS will grow 23.3% to $2.33. The company’s history of earnings surprises is varied, as it missed expectations in three of the last four quarters but beat them once.
Out of 15 analysts covering LVS, the consensus rating is a “Moderate Buy.” This includes ten “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
Recent Analyst Opinions
This outlook is less optimistic than it was three months ago, when 11 analysts recommended a “Strong Buy.” On October 24, Stifel Nicolaus’s Steven Wieczynski reiterated a “Buy” rating for Las Vegas Sands, setting a price target of $64, which indicates a potential upside of 27% from the current price.
The average price target for LVS is set at $58.41, representing a 15.9% premium to its current value. The highest target, at $64.50, suggests an upside potential of 28%.
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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, 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.
