Shares of Las Vegas Sands (NYSE:LVS) spiked 4.8% in extended trading yesterday after reporting a robust top-line beat for the third quarter of Fiscal 2023. Revenue of $2.79 billion soared more than 176% year-over-year and easily beat analysts’ consensus estimate of $2.72 billion. Chairman and CEO Robert G. Goldstein attributed the solid performance to a resumption in “travel and tourism spending in both Macau and Singapore” during the quarter.
Meanwhile, adjusted earnings of $0.55 per share came in line with expectations. In Q3FY22, LVS reported an adjusted loss of $0.27 per share. At the same time, the American casino and resort operator bumped its share repurchase authorization to $2 billion from $916 million. The board of directors also extended the program’s expiration date to November 3, 2025, while intending to begin the share buybacks in Q4FY23.
Is LVS a Buy or a Sell?
Following the Q3 beat, Deutsche Bank analyst Carlo Santarelli reiterated a Buy rating on LVS with a price target of $65 (45.7% upside). The five-star analyst is encouraged by the company’s market share gains, margin expansion, and strategy of returning excess capital to shareholders via enhanced stock buybacks.
Overall, with eight Buys and one Hold rating, LVS stock commands a Strong Buy consensus rating on TipRanks. Also, the average Las Vegas Sands’ price target of $67.72 implies an impressive 51.8% upside potential from current levels. Year-to-date, LVS stock has lost 9.3%.
