Las Vegas Sands (LVS, Financial) is experiencing a noticeable surge in options activity ahead of its earnings report. The volume of options trading has doubled the typical level, with a preference for call options outpacing puts at a ratio of 4 to 3. This increased activity indicates heightened investor interest as the company prepares to disclose its latest financial results.
The current implied volatility suggests market participants are bracing for a significant price movement of approximately 6.2%, translating to a potential change of $2.18 in the stock price when the earnings are announced. Historically, the stock's price has shown a median fluctuation of 2.9% in reaction to earnings announcements over the last eight quarters, highlighting the potential for a more pronounced move this time around.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Las Vegas Sands Corp (LVS, Financial) is $54.42 with a high estimate of $64.00 and a low estimate of $45.00. The average target implies an upside of 55.75% from the current price of $34.94. More detailed estimate data can be found on the Las Vegas Sands Corp (LVS) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Las Vegas Sands Corp's (LVS, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Las Vegas Sands Corp (LVS, Financial) in one year is $104.13, suggesting a upside of 198.03% from the current price of $34.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Las Vegas Sands Corp (LVS) Summary page.
Key Business Developments
Release Date: January 29, 2025
- Macau Market Revenue Growth: 6% increase in Q4 2024 compared to Q4 2023.
- Mass Gaming Revenue Growth in Macau: 5% increase in Q4 2024 compared to Q4 2023.
- Macau EBITDA: $571 million for Q4 2024.
- Macau EBITDA Margin (Excluding Londoner): 35.1%, down 230 basis points from Q4 2023.
- Turnover Rents in Macau: $27 million lower in Q4 2024 compared to Q4 2023.
- Venetian Margin: 36.7% for Q4 2024.
- Plaza and Four Seasons Margin: 37.2% for Q4 2024.
- Singapore Adjusted Property EBITDA: $537 million for Q4 2024.
- Singapore EBITDA Margin: 47.2% assuming expected hold on rolling play.
- Stock Repurchase: $450 million of LVS stock repurchased in Q4 2024.
- Quarterly Dividend: $0.20 per share, with an annual increase to $1 per share for 2025.
- Sands China Stock Purchase: Approximately $250 million purchased, increasing LVS equity interest to 72.3%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Las Vegas Sands Corp (LVS, Financial) reported a 6% growth in Macau market revenue for Q4 2024 compared to the same period in 2023.
- The company opened the Londoner Grand Casino and introduced 315 Londoner Grand suites, with plans to have a full complement of 1,500 suites and 905 rooms by May 2025.
- Marina Bay Sands in Singapore achieved $537 million in adjusted property EBITDA, reflecting a 71% growth compared to Q4 2018.
- LVS repurchased $450 million of its stock and increased its annual dividend to $1 per share for 2025.
- The company is nearing completion of its Londoner Grand renovation program, which is expected to strengthen its competitive position and drive future EBITDA growth.
Negative Points
- Macau's EBITDA was impacted by lower-than-expected hold in the rolling segment, reducing potential EBITDA by $22 million.
- Turnover rents in Macau were $27 million lower in Q4 2024 compared to the previous year.
- The Londoner renovation caused a 20% reduction in room availability, impacting margins and EBITDA.
- Retail sales in Macau were down year-over-year, affecting turnover rent at the Four Seasons Mall.
- Concerns were raised about potential competition from iGaming in New York, which could impact the return profile of a potential casino in that market.
