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Bear of the Day: Las Vegas Sands (LVS)

Las Vegas Sands LVS is still being impacted by COVID. This Zacks Rank #5 (Strong Sell) missed in the third quarter and analysts cut 2021 estimates

Las Vegas Sands operates resorts in Las Vegas, Singapore and Macao. Its properties include The Venetian Resort and Sands Expo in Las Vegas, the Marina Bay Sands in Singapore, The Venetian Macao, The Plaza and Four Seasons Hotel Macao, The Londoner Macao, The Parisian Macao and the Sands Macao on the Macao Peninsula.

A Third Quarter Miss

On Oct 20, Las Vegas Sands reported its third quarter results and missed on the Zacks Consensus Estimate by $0.20.

Earnings were a loss of $0.45 versus the Zacks Consensus which called for a loss of $0.25.

It has missed 5 out of the last 6 quarters, but they were all quarters during the pandemic.

Revenue rose to $857 million, up from $446 million in the prior year quarter.

But the company is still seeing the impacts from COVID.

"Demand for our offerings from customers who have been able to visit remains strong, but pandemic-related travel restrictions in both Macao and Singapore continue to limit visitation and hinder our current financial performance," said CEO Robert G. Goldstein.

The company is also selling its Las Vegas properties for $6.25 billion. That deal is expected to close in the first quarter of 2022.

Analysts Cut 2021 and 2022 Earnings Estimates

The analysts are bearish about 2021 and 2022.

2 estimates have been cut in 2021 since the report. That has pushed the earnings estimates down to a loss of $0.98 from a loss of $0.84 before the earnings report.

That's still an improvement from last year, when the company lost $2.12.

1 estimate was also cut for 2022 after the report even though earnings are expected to turn around as the global economy reopens. The 2022 Zacks Consensus has fallen to $1.41 from $1.59 in the last week.

But that is earnings growth of 243%.

Shares Back to Coronavirus Lows

With the travel recovery stalled, shares of Las Vegas Sands have been weak in 2021.

Shares are down 36.2% year-to-date.

Image Source: Zacks Investment Research

But they're also testing the March 2020 coronavirus lows.

The stock has no P/E because of the negative earnings expected this year.

But investors might want to keep Las Vegas Sands on their watch list as travel is likely to turn around in 2022.

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Las Vegas Sands Corp. (LVS): Free Stock Analysis Report
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