Las Vegas Sands Corp. (NYSE:LVS) shares fell 3.7% to US$65.31 in the week since its latest full-year results. Las Vegas Sands reported US$14b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.50 beat expectations, being 3.0% higher than what analysts expected. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
After the latest results, the consensus from Las Vegas Sands's 17 analysts is for revenues of US$13.3b in 2020, which would reflect a small 3.6% decline in sales compared to the last year of performance. Statutory earnings per share are expected to decline 13% to US$3.06 in the same period. In the lead-up to this report, analysts had been modelling revenues of US$13.9b and earnings per share (EPS) of US$3.27 in 2020. It's pretty clear that analyst sentiment has fallen after the latest results, leading to lower revenue forecasts and a minor downgrade to earnings per share estimates.
Analysts made no major changes to their price target of US$73.05, suggesting the downgrades are not expected to have a long-term impact on Las Vegas Sands's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Las Vegas Sands analyst has a price target of US$83.00 per share, while the most pessimistic values it at US$55.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Las Vegas Sands shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast revenue decline of 3.6% a significant reduction from annual growth of 2.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same market are forecast to see their revenue grow 7.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect Las Vegas Sands to grow slower than the wider market.
The Bottom Line
The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Las Vegas Sands going out to 2023, and you can see them free on our platform here.
You can also see whether Las Vegas Sands is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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