Las Vegas Sands Corporation
Las Vegas Sands Corp. (NYSE: LVS) is a global developer of destination properties (Integrated Resorts). The Integrated Resorts features accommodations, gaming, entertainment and retail malls, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Its other amenities include luxury accommodations, restaurants, lounges, invitation-only clubs, and private gaming salons. It owns and operates Integrated Resorts in Macao and Singapore.
Recent Financial and Business Updates:
- Optimistic Leadership and Strategic Investments: Las Vegas Sands Corp. (LVS) reported its financial results for the third quarter of 2023, with Chairman and CEO Robert G. Goldstein expressing optimism regarding the recovery of travel and tourism spending in Macao and Singapore. The company remains enthusiastic about its growth prospects in both markets. In Macao, positive progress was noted in gaming and non-gaming segments, and LVS is committed to further investments aimed at enhancing Macao's appeal to tourists. In Singapore, the Marina Bay Sands property showcased strong financial and operational performance. LVS's commitment to investments in its team members, communities, and Integrated Resort properties positions the company well for future growth, with financial strength to support ongoing investment, capital expenditures, and shareholder returns.
- Strong Financial Performance: In the financial performance realm, LVS reported a substantial increase in net revenue, reaching 2.80 billion USD for the quarter, compared to 1.01 billion USD in the same quarter of the previous year. Operating income amounted to 688 million USD, a significant improvement from the operating loss of 177 million USD in the prior year's quarter. Net income from continuing operations in Q3 2023 was 449 million USD, in contrast to a net loss from continuing operations of 380 million USD in Q3 2022. Notably, consolidated adjusted property EBITDA reached 1.12 billion USD, marking a substantial increase from 191 million USD in the previous year's quarter.
- Strong Performance from Sands China Ltd: Sands China Ltd. (SCL) reported robust financial results, with total net revenues on a GAAP basis surging to 1.78 billion USD, compared to 251 million USD in the third quarter of 2022. SCL's net income reached 231 million USD, marking a significant improvement from a net loss of 472 million USD in the same quarter of the previous year.
- Financial Landscape: In the financial landscape, interest expenses, net of amounts capitalized, totaled 200 million USD in the third quarter of 2023, compared to 183 million USD in the prior year's quarter. The effective income tax rate for Q3 2023 was 21.4%, a slight increase from 18.8% in the same period of the previous year.
- Commitment to Shareholder Returns and Capital Strength: LVS maintained its commitment to delivering returns to shareholders by paying a quarterly dividend of 0.20 USD per common share during the quarter. Furthermore, the company's Board of Directors authorized an increase in the share repurchase program from 916 million USD to 2.0 billion USD, extending the authorization's expiration date to November 3, 2025. The company intends to resume its share repurchase program in the fourth quarter of 2023. As of September 30, 2023, LVS's unrestricted cash balances stood at 5.57 billion USD. The company also has access to 4.17 billion USD available for borrowing under its U.S., SCL, and Singapore revolving credit facilities, net of outstanding letters of credit. The total debt outstanding, excluding finance leases and financed purchases, was 14.17 billion USD as of the same date. Capital expenditures during the third quarter totaled 330 million USD, covering various activities related to construction, development, and maintenance.
Technical Observation (on the daily chart)
The Relative Strength Index (RSI) observed over a 14-day period registers at 45.42, indicating a recovery from oversold conditions. This suggests the potential for a short-term uptick in momentum or a period of consolidation. Furthermore, the stock's current position is situated between both the 21-day Simple Moving Average (SMA) and the 50-day SMA, potentially acting as dynamic short-term support and resistance levels respectively. Presently, the stock price seems to have undergone a reasonable adjustment following a robust upward trend. The price is currently between USD 43.50-USD 47.00, with a possibility of breakout in any direction. The direction it takes will play a pivotal role in shaping the stock's short to medium-term prospects.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
How to Read the Charts?
The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.
The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.
The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.
The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
The reference date for all price data, currency, technical indicators, support, and resistance levels is October 20, 2023. The reference data in this report has been partly sourced from REFINITIV.
Abbreviations
CMP: Current Market Price
SMA: Simple Moving Average
RSI: Relative Strength Index
USD: United States dollar
Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.
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