The most recent earnings announcement Las Vegas Sands Corp.’s (NYSE:LVS) released in December 2018 confirmed that the business faced a substantial headwind with earnings deteriorating by -14%. Below is a brief commentary on my key takeaways on how market analysts predict Las Vegas Sands’s earnings growth trajectory over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Analysts’ expectations for the coming year seems rather subdued, with earnings increasing by a single digit 2.1%. The following year doesn’t look much more exciting, though earnings does reach US$2.9b in 2022.
Even though it’s informative knowing the growth year by year relative to today’s level, it may be more beneficial to gauge the rate at which the company is growing on average every year. The pro of this method is that we can get a bigger picture of the direction of Las Vegas Sands’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 8.0%. This means that, we can presume Las Vegas Sands will grow its earnings by 8.0% every year for the next couple of years.
For Las Vegas Sands, I’ve compiled three fundamental aspects you should look at:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is LVS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LVS is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of LVS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.