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Bull of the Day: Las Vegas Sands (LVS)

Madeleine Johnson
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Bull of the Day: Las Vegas Sands (LVS)

A big player in the gaming and casino industry, Las Vegas Sands Corp. (LVS) started from just one property back in 1990 and now has many locations in Las Vegas; Bethlehem, PA; Macao; and Singapore.

Guests not only enjoy gaming at a Las Vegas Sands resort, but a luxury hotel experience; dining and entertainment; Meetings, Incentive, Convention and Exhibition (MICE) facilities; and many other business and leisure amenities.

Blowout Q1 Earnings

A few weeks ago, Zacks Rank #1 (Strong Buy) Las Vegas Sands delivered another great quarterly performance, with the top and bottom line surpassing the Zacks Consensus Estimate for the fifth straight quarter.

Overall, the company’s results were driven by robust performance across Macao, Singapore, and Las Vegas.

Adjusted earnings of $1.04 per share and net revenues of $3.58 billion grew 57.6% and 16.7% year-over-year, respectively. Net income surged nearly 180% to $1.62 billion.

Consolidated adjusted property EBITDA increased 30.7% to $1.5 billion, while in Macao, adjusted property EBITDA improved 26% to $789 million.

Additionally, Las Vegas Sands paid its shareholders a quarterly dividend of 75 cents per share and repurchased $75 million of common stock.

Earnings Outlook

For LVS, its bottom line is trending upward for the foreseeable future.

Earnings are expected to grow about 8% for the current quarter. Three analysts have revised estimates upwards recently, but two have cut their outlook for the period during the same time period. The Zacks consensus has moved from $0.78 to $0.79 in the past 60 days.

Fiscal 2018 figures are looking pretty great, with seven estimates moving higher in the past two months. The Zacks consensus estimate trend has jumped from $3.36 per share to $3.82 per share.

Analysts are feeling optimistic for fiscal 2019 as well, with six moving their estimate higher in the last 60 days.

LVS has an average earnings surprise of 17.5%

What’s Next for LVS?

Looking ahead, the company remains focused on a convention-based Integrated Resort business model that will help generate a diversified cash flow, as well as profit from non-gaming segments. It should also bring in economic and diversification benefits to the regions in which it operates.

Shares of Las Vegas Sands have gained around 7.8% since the start of the year, as well as 26.5% in the past one-year period. In comparison, the S&P 500 has lost roughly 2.6% and gained 9%, respectively.

Las Vegas Sands Corp. Price and Consensus

Las Vegas Sands Corp. Price and Consensus | Las Vegas Sands Corp. Quote

LVS is currently trading at a forward P/E of 19.7X.

Its industry, Gaming, has gained around 5.5% year-to-date, and the group sits in the top 32% of all industries ranked by the Zacks Industry Rank. And, LVS is one of the top performers, especially when compared to industry peers like Wynn Resorts (WYNN) and MGM Resorts (MGM).

Taking into account its impressive industry standing, as well as its expected earnings growth, Las Vegas Sands could be an exciting opportunity for investors looking to get in to the gaming space.

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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
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