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Category: Stock Market and Las Vegas Sands Corp.
Date: 21 January 2020 Stock Price: $74.06 We take a look at the 3rd quarter earnings report of their 2019 fiscal year of Las Vegas Sands Corp, a developer and operator of various integrated resorts which includes which includes Marina Bay Sands resort in Singapore a world famous resort with a massive infinity pool at the top of the resort
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About Las Vegas Sands Corp
Las Vegas Sands is the world’s pre-eminent developer and operator of world-class Integrated Resorts. We deliver unrivaled economic benefits to the communities in which we operate. Sands created the meetings, incentives, convention and exhibition (MICE)-based Integrated Resort. Our industry-leading Integrated Resorts provide substantial contributions to our host communities including growth in leisure and business tourism, sustained job creation and ongoing financial opportunities for local small and medium-sized businesses.
Our properties include The Venetian Resort and Sands Expo in Las Vegas and the iconic Marina Bay Sands in Singapore. Through majority ownership in Sands China Ltd., we have developed the largest portfolio of properties on the Cotai Strip in Macao, including The Venetian Macao, The Plaza and Four Seasons Hotel Macao, Sands Cotai Central and The Parisian Macao, as well as the Sands Macao on the Macao Peninsula. Sands is dedicated to being a good corporate citizen, anchored by the core tenets of serving people, planet and communities.
We deliver a great working environment for 50,000 team members worldwide, drive social impact through the Sands Cares charitable giving and community engagement program and lead in environmental performance through the award-winning Sands ECO360 global sustainability program
Our properties include The Venetian Resort and Sands Expo in Las Vegas and the iconic Marina Bay Sands in Singapore. Through majority ownership in Sands China Ltd., we have developed the largest portfolio of properties on the Cotai Strip in Macao, including The Venetian Macao, The Plaza and Four Seasons Hotel Macao, Sands Cotai Central and The Parisian Macao, as well as the Sands Macao on the Macao Peninsula. Sands is dedicated to being a good corporate citizen, anchored by the core tenets of serving people, planet and communities.
We deliver a great working environment for 50,000 team members worldwide, drive social impact through the Sands Cares charitable giving and community engagement program and lead in environmental performance through the award-winning Sands ECO360 global sustainability program
Overview of Las Vegas Sands' 3rd quarter 2019 earnings report
Data below is reported for the latest quarter unless stated otherwise
Net revenues of Las Vegas Sands various properties (in millions of dollars)
- Net sales: $3.250 billion (down from $3.372 billion for the same quarter of the previous year)
- Net sales decreased by -3.61% over the last 12 months
- Cost of sales: $2.351 billion (down from $2.450 billion for the same quarter of the previous year)
- Cost of sales decreased by -4.04% over the last 12 months
- Net income: $533 million (down from $571 million for the same quarter of the previous year)
- Diluted earnings per share: $0.69 (down from $0.73 for the same quarter of the previous year)
- PE ratio of Las Vegas Sands: 26.1
- Dividend declared for quarter: $0.77
- Dividend yield of Las Vegas Sands: 4.1%
- Diluted weighted-average shares outstanding: 769 million (down from 787 million for the same quarter of the previous year)
- Cash and cash equivalents: $3.83 billion
- Cash and cash equivalents per share: $4.98
- Cash and cash equivalents makes up 6.7% of Las Vegas Sands Corp's market capital
Net revenues of Las Vegas Sands various properties (in millions of dollars)
- The Venetian Macao: 851
- Sands Cotai Central: 487
- The Parisian Macao: 381
- The Plaza Macao and Four Seasons Hotel Macao: 196
- Sands Macao: 171
- Ferry Operations and Other: 26
- Total Macao Operations: 2,112
- Marina Bay Sands: 793
- Las Vegas Operating Properties: 406
Las Vegas Sands' management commentary on their 3rd quarter 2019 earnings report
LAS VEGAS, NV, October 23, 2019 - Las Vegas Sands Corp. (NYSE: LVS), the world’s leading developer and operator of convention-based Integrated Resorts, today reported financial results for the quarter ended September 30, 2019
“We delivered solid financial results in the quarter, with Adjusted Property EBITDA reaching $1.28 billion,” said Sheldon G. Adelson, chairman and chief executive officer. “We remain enthusiastic about our future growth opportunities in Asia. Next year, we will introduce approximately two million square feet of luxurious suite accommodations on the Cotai Strip with the opening of the Grand Suites at Four Seasons Macao and The Londoner Tower Suites. Additional tourism and entertainment amenities of The Londoner Macao will debut throughout 2020 and 2021. Looking further ahead, the expansion of Marina Bay Sands in Singapore will expand our suite capacity by 40% and introduce a state-of-the-art entertainment arena, both of which should contribute to growth in the future. We are also aggressively pursuing additional development opportunities in new markets, including in Japan
“We delivered solid financial results in the quarter, with Adjusted Property EBITDA reaching $1.28 billion,” said Sheldon G. Adelson, chairman and chief executive officer. “We remain enthusiastic about our future growth opportunities in Asia. Next year, we will introduce approximately two million square feet of luxurious suite accommodations on the Cotai Strip with the opening of the Grand Suites at Four Seasons Macao and The Londoner Tower Suites. Additional tourism and entertainment amenities of The Londoner Macao will debut throughout 2020 and 2021. Looking further ahead, the expansion of Marina Bay Sands in Singapore will expand our suite capacity by 40% and introduce a state-of-the-art entertainment arena, both of which should contribute to growth in the future. We are also aggressively pursuing additional development opportunities in new markets, including in Japan
“Finally, we remain deeply committed to maintaining our industry-leading financial strength while continuing to increase the return of capital to shareholders. I am pleased to announce the Las Vegas Sands Board of Directors has approved an increase in our annual dividend for the 2020 calendar year, our eighth consecutive annual increase, to $3.16 per share, or $0.79 per share per quarter.” The company paid a recurring quarterly dividend of $0.77 per common share and continued its return of capital through share repurchases of $100 million during the quarter. The company announced its next quarterly dividend of $0.77 per common share will be paid on December 26, 2019, to Las Vegas Sands shareholders of record on December 17, 2019
Las Vegas Sands Corp (NYSE: LVS) stock price history
The image below, obtained from Google, shows the stock price history of Las Vegas Sands Corp over the last 5 years. And it's been a very volatile but overall pretty good time for Las Vegas Sands Corp stockholders. 5 years ago it was trading at $53.90 and its currently trading at around $74.06 a stock. That's a return of 37.4% provided to Las Vegas Sands Corp stockholders over the last 5 years.
The stock of Las Vegas Sands Corp is trading at a lot closer to its 52 week high of $74.20 than it is to its 52 week low of $51.16 which to us is a clear indication that the short term sentiment and momentum of Las Vegas Sands Corps stock is fairly positive at this point in time.
The stock of Las Vegas Sands Corp is trading at a lot closer to its 52 week high of $74.20 than it is to its 52 week low of $51.16 which to us is a clear indication that the short term sentiment and momentum of Las Vegas Sands Corps stock is fairly positive at this point in time.
Recent coverage of Las Vegas Sands Corp
The extract below discusses the latest regarding Las Vegas Sands Corp as obtained from TheStreet.com
Shares of casino stocks were rising sharply Monday after analysts at J.P. Morgan published a note saying that the pro-democracy protests in Hong Kong won't have a material impact on gross gaming revenue in Macau. Las Vegas Sands (LVS) - Get Report shares rose 4.42% to $54.72, while MGM Resorts (MGM) - Get Report gained 2.4% to $28.99 and Wynn Resorts (WYNN) - Get Report climbed 6.8% to $112.74.
"Chinese visitors via Hong Kong ferry are typically package tourists or (very) low-end players anyway," Monday's note said, leading the firm to conclude that "Actual impact on [Macau's] gaming demand should be smaller than on visitation."
Read the full article here
Shares of casino stocks were rising sharply Monday after analysts at J.P. Morgan published a note saying that the pro-democracy protests in Hong Kong won't have a material impact on gross gaming revenue in Macau. Las Vegas Sands (LVS) - Get Report shares rose 4.42% to $54.72, while MGM Resorts (MGM) - Get Report gained 2.4% to $28.99 and Wynn Resorts (WYNN) - Get Report climbed 6.8% to $112.74.
"Chinese visitors via Hong Kong ferry are typically package tourists or (very) low-end players anyway," Monday's note said, leading the firm to conclude that "Actual impact on [Macau's] gaming demand should be smaller than on visitation."
Read the full article here
Las Vegas Sands Corp (NYSE: LVS) latest stock valuation
So what is Las Vegas Sands Corp stock worth based on the release of their latest earnings report? Based on Las Vegas Sands Corp latest earnings report provided our valuation model provides a target (full value) price at $64.90 a Las Vegas Sands Corp stock We therefore believe that the stock is overvalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target (full value) price which in this case is $64.90. Therefore we see a good entry point into Las Vegas Sands Corp stock at $58.40 or below. We expect the stock of Las Vegas Sands Corp to pull back from current levels in coming weeks and months to more realistic valuation levels closer to our target price (full value price)
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target (full value) price which in this case is $64.90. Therefore we see a good entry point into Las Vegas Sands Corp stock at $58.40 or below. We expect the stock of Las Vegas Sands Corp to pull back from current levels in coming weeks and months to more realistic valuation levels closer to our target price (full value price)
Next earnings release for Las Vegas Sands Corp
It is expected that Las Vegas Sands will release their 4th quarter and full fiscal 2019 earnings report on 21 January 2020