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Nevada-based Las Vegas Sands Corp. (LVS) develops, owns, and operates numerous integrated resorts in Macau and Singapore. With a market cap of $38.1 billion, its integrated resorts feature luxurious accommodations, casinos, entertainment, malls, celebrity chef restaurants, and other amenities. The resorts and casinos operator is expected to announce its fiscal Q3 earnings on Wednesday, Oct. 16.
Ahead of the event, analysts expect LVS to report a profit of $0.55 per share, matching the year-ago quarter’s figures. The company has surpassed Wall Street’s consensus estimates twice over the past four quarters while missing the estimates on two other occasions. Although its EPS for the last reported quarter grew by 19.6% year-over-year to $0.55, it missed the consensus estimates by 6.8%.
Looking ahead to fiscal 2024, analysts expect LVS to report an EPS of $2.45, up 29.6% from $1.89 in fiscal 2023. In fiscal 2025, its EPS is projected to grow 12.7% year-over-year, reaching $2.76.
Las Vegas Sands has gained 2.3% in 2024, lagging behind the S&P 500 Index’s ($SPX) 20.8% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 12.1% returns on a YTD basis.
Shares of Las Vegas Sands dipped 2.4% after the release of its Q2 earnings on Jul. 24. The company reported an 8.6% year-over-year growth in net revenues, reaching $2.8 billion and a 13.1% growth in net income attributable to shareholders, totaling $353 million. However, it missed both Wall Street’s topline and EPS expectations.
Over the past months, Las Vegas Sands experienced a sharp decline in share prices. However, a significant turnaround has been observed recently, LVS surged a massive 29.1% over the past month, and 8% alone in the Sep. 26 trading session. This surge is largely attributed to China’s announcement of a substantial stimulus package, injecting approximately 1 trillion yuan (around $142 billion) into its largest state-owned banks to stimulate the slowing economy. Given that five of Las Vegas Sands’ six properties are located in Macau, the company stands to benefit significantly from this economic boost.
The consensus opinion on the LVS stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 15 analysts covering the stock, 10 recommend “Strong Buy,” one suggests “Moderate Buy,” and four advise a “Hold” rating.
The mean price target of $53 suggests a potential upside of 5.3% from current price levels.
On the date of publication, Aditya Sarawgi 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.
