Las Vegas Sands LVS is still affected by COVID. That Zacks rank of # 5 (Strong Sell) was missed in the third quarter and analysts have lowered estimates for 2021
Las Vegas Sands operates resorts in Las Vegas, Singapore, and Macau. Properties include the Venetian Resort and Sands Expo in Las Vegas, the Marina Bay Sands in Singapore, the Venetian Macau, The Plaza and Four Seasons Hotel Macau, the London Macau, the Parisian Macau, and the Sands Macau on the Macau Peninsula .
A failure in the third quarter
On October 20, Las Vegas Sands announced third quarter results, missing the Zacks consensus estimate by $ 0.20.
The result was a loss of $ 0.45 against the Zacks Consensus, which called for a loss of $ 0.25.
It missed 5 of the last 6 quarters, but it was all quarters during the pandemic.
Revenue rose to $ 857 million from $ 446 million in the year-ago quarter.
But the company is still seeing the effects of COVID.
“Demand for our offerings from customers who have been able to visit remains strong, but pandemic travel restrictions in Macau and Singapore continue to limit visits and hinder our current financial performance,” said CEO Robert G. Goldstein.
The company is also selling its Las Vegas real estate for $ 6.25 billion. The deal is expected to close in the first quarter of 2022.
Analysts lower earnings estimates for 2021 and 2022
The analysts are pessimistic for 2021 and 2022.
2 estimates have been cut in 2021 since the report. This has pushed earnings estimates down from $ 0.84 prior to the earnings report to a loss of $ 0.98.
That’s still an improvement over last year when the company lost $ 2.12.
1 estimate has also been lowered for 2022, according to the report, although gains are expected to reverse as the global economy reopens. The 2022 Zacks consensus has fallen to $ 1.41 from $ 1.59 last week.
But that’s 243% earnings growth.
Stocks return to coronavirus lows
With the rebound in travel faltering, Las Vegas Sands stocks were weak in 2021.
Shares are down 36.2% since the start of the year.
The story goes on
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Image source: Zacks Investment Research
But they are also testing the March 2020 coronavirus lows.
The share has no P / E ratio due to the negative earnings expected this year.
Investors should keep Las Vegas Sands on their watchlist, however, as travel is likely to be reversed in 2022.
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