Las Vegas Sands Surges on China Growth Outlook

By Patricia Miller

Jan 31, 2025

2 min read

Las Vegas Sands' strong Q4 results sparked a 10% stock surge, showcasing potential growth opportunities and insights for retail investors in the gaming sector.

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#What You Need To Know

Las Vegas Sands (NYSE: LVS) experienced a significant stock increase of up to 10% following the release of its fourth-quarter financial results, marking the largest daily gain since September 2022. The company reported net revenue of $2.90 billion, slightly surpassing analyst expectations while reflecting a minor year-over-year decline. Adjusted property EBITDA fell to $1.11 billion, aligning with estimates despite a 7.5% drop from the previous year. Earnings per share slightly declined to $0.45, with adjusted EPS slightly below estimates at $0.54.

Performance across properties in Macau was mixed, with significant declines noted at The Venetian Macao and The Londoner Macao, while Sands Macao demonstrated considerable growth. Marina Bay Sands maintained a stable performance despite a slight EBITDA decrease, buoyed by strong rolling chip volume growth. The company saw a notable increase in capital expenditures this quarter and made a strategic acquisition of Sands China Ltd. shares. Analysts have reacted positively to the results, highlighting a potential recovery for Macau in early 2024 and strong performance metrics for Marina Bay Sands.

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#Why This Is Important for Retail Investors

  1. Macau Recovery Potential – Analysts expect a rebound in Macau’s gaming market, with share recovery projected to accelerate in the first half of 2024, potentially boosting long-term returns.

  2. Singapore’s Growth Stability – Marina Bay Sands continues to deliver strong results, with record-high gaming revenue and rising VIP volumes, reinforcing its position as a key earnings driver.

  3. Capital Investment for Future Gains – The company’s $547 million in capital expenditures, particularly in Macau and Singapore, aims to enhance long-term revenue and EBITDA growth.

  4. Dividend and Buyback Prospects – With solid earnings performance and a $250 million Sands China stock buyback, Las Vegas Sands suggests the company has a shareholder-friendly policy.

#Relevant ETFs

Some investors prefer to invest in stocks via an exchange-traded fund for ease and reduced risk. Some relevant ETFs include the following:

  • VanEck Vectors Gaming ETF

  • Invesco Dynamic Leisure and Entertainment ETF

  • Global X Video Games & Esports ETF

  • iShares Global Consumer Discretionary ETF

  • SPDR S&P 500 ETF Trust

  • Fidelity MSCI Consumer Discretionary Index ETF

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.