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Las Vegas Sands Corp. (NYSE:LVS): What Are The Future Prospects?

David Owens

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On 31 December 2018, Las Vegas Sands Corp. (NYSE:LVS) released its earnings update. Generally, analyst forecasts seem fairly subdued, as a 1.5% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 5.0%. With trailing-twelve-month net income at current levels of US$2.4b, we should see this rise to US$2.5b in 2020. Below is a brief commentary around Las Vegas Sands’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

View our latest analysis for Las Vegas Sands

Can we expect Las Vegas Sands to keep growing?

The longer term view from the 18 analysts covering LVS is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.

NYSE:LVS Past and Future Earnings, February 25th 2019

From the current net income level of US$2.4b and the final forecast of US$3.0b by 2022, the annual rate of growth for LVS’s earnings is 8.3%. EPS reaches $3.82 in the final year of forecast compared to the current $3.07 EPS today. In 2022, LVS’s profit margin will have expanded from 18% to 20%.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Las Vegas Sands, I’ve put together three essential factors you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is Las Vegas Sands worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Las Vegas Sands is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Las Vegas Sands? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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. Thank you for reading.