American casino and resort operator Las Vegas Sands Corp. (LVS) reported a wider-than-expected third-quarter loss due to COVID-19 pandemic-related restrictions and fewer visitors. Having said that, both Macao and Singapore are witnessing a steady recovery in guest visits as travel restrictions are relaxed. Shares fell 2% on Wednesday to close at $39.52 and another 2% in the extended trading session.
The company reported an adjusted quarterly loss of $0.45 per share, worse than the consensus-estimated loss of $0.20 per share. In the prior-year period, LVS posted an adjusted loss of $0.59 per share.
Moreover, net revenue grew 92.2% year-over-year to $857 million but also missed Street estimates of $1.24 billion. (See Insiders’ Hot Stocks on TipRanks)
Commenting on the results, Robert G. Goldstein, Chairman, and CEO said, “We remain confident in the eventual recovery in travel and tourism spending across our markets. 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.”
In response to LVS’ weak performance, Deutsche Bank analyst Carlo Santarelli lowered the price target on the stock to $65 from $73 while maintaining a Buy rating.
Santarelli said, “Our view on LVS remains one of a favorable medium-to longer-term risk-reward, though one that is likely to continue to take time to play out, given the uncertainty created by the concession/gaming law process and COVID-19 policies.”
Overall, the stock has a Moderate Buy consensus rating based on 3 Buys and 5 Holds. The average Las Vegas Sands price target of $52 implies 31.6% upside potential to current levels. Shares have lost 14% over the past year.
Additionally, TipRanks data shows that financial blogger opinions are 71% Bullish on LVS, compared to a sector average of 68%.