Financial Analysts Discuss Las Vegas Sands Stock Post-earnings

The globally recognizable gaming and entertainment giant, Las Vegas Sands, released its first quarter of 2024 results last week. On Wednesday, the company uncovered details regarding its performance in Singapore and Macau. Robert G. Goldstein, Sands’ CEO and chairman, revealed that the company was pleased with its operating results and performance in both Singapore and Macau. He added that the figures reaffirm Sands’ growth in the two jurisdictions.

Before the results were released, the company’s stock hovered around the $50.40 price through Wednesday. However, after the release, a decrease in Sands’ shares was observed. Financial industry analysts attributed the decline as the result of missed consensus for the company’s operations in Macau in terms of adjusted earnings, as well as revenue.

After the release of its Q1 2024 results, Sands’ stocks fell by approximately 10.62%, closing at $45.46 as of Friday, April 19, 2024.

Experts Share Updates after Sands’ Q1 Results

Despite the dip in the share price, David Katz, an expert analyst with Jefferies Equities Research, who was recently cited by CDC Gaming, confirmed a hold rating for the stock but reduced the price target to $53. He confirmed a positive outlook for Sands’ Singapore and Macau operations, adding: “Management expects this to continue and remains positive on Asia, despite weaker trends in China.”

Still, Katz said that the company’s profitability and revenues in Macau may be impacted throughout 2024, while uncertainties in China “continue to temper shares.” The expert added that Jefferies Equities Research updated its predictions for Sands’ performance in 2024 and 2025. The expected revenue for 2024 changed to $11.9 billion from $12.2 billion, while the expected adjusted EBITDA decreased from $4.9 billion to $4.8 billion.

The initial estimate for 2025 revenue was $13 billion while adjusted EBITDA was 5.36 billion. The estimates were updated to $13.1 billion and $5.3 billion respectively.

While Katz confirmed a hold rating for Sands’ stocks, J.P. Morgan’s analyst, Joseph Greff, lowered the company’s stock price target from $59 to $55. He said that the latest results by the company were better than the initial expectations, adding that the figures were “stellar.” On the other hand, CBRE’s analyst, John DeCree, was optimistic, confirming a buy rating for Sands stocks. The expert confirmed a lowering of the price target to $64 from $74, considering Sands’ results from Macau.