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Analysts Have Lowered Expectations For Las Vegas Sands Corp. (NYSE:LVS) After Its Latest Results

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Simply Wall St
·4 min read
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The analysts might have been a bit too bullish on Las Vegas Sands Corp. (NYSE:LVS), given that the company fell short of expectations when it released its full-year results last week. The numbers were fairly weak, with sales of US$3.6b missing analyst predictions by 2.6%, and (statutory) losses of US$2.21 per share being slightly larger than what the analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Las Vegas Sands

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the consensus forecast from Las Vegas Sands' 16 analysts is for revenues of US$9.02b in 2021, which would reflect a huge 150% improvement in sales compared to the last 12 months. Las Vegas Sands is also expected to turn profitable, with statutory earnings of US$0.91 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$10.0b and earnings per share (EPS) of US$1.25 in 2021. The analysts seem less optimistic after the recent results, reducing their sales forecasts and making a pretty serious reduction to earnings per share numbers.

The analysts made no major changes to their price target of US$61.56, suggesting the downgrades are not expected to have a long-term impact on Las Vegas Sands' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Las Vegas Sands at US$84.00 per share, while the most bearish prices it at US$47.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Las Vegas Sands' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Las Vegas Sands is forecast to grow faster in the future than it has in the past, with revenues expected to grow 150%. If achieved, this would be a much better result than the 4.8% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 24% per year. So it looks like Las Vegas Sands is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although industry data suggests that Las Vegas Sands' revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$61.56, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Las Vegas Sands going out to 2024, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Las Vegas Sands that you need to take into consideration.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.