Las Vegas, Nevada remains the casino gambling capital of the world. However, many of the entertainment giants have endured their fair share of challenges in recent times. Given the highly competitive nature of the real money casino industry, innovation and change have become key buzzwords up and down the Las Vegas Casino Hotels on the Strip.
In a recent post on Yahoo Finance Las Vegas Sands Corp (NYSE: LVS) is covered in length. Going back to the last day of 2018, the company released an earnings update. A modest 1.5 percent increase in profits has been projected for the coming year. This was a bit more subdued from the five percent average growth rate over the past five-year time frame.
How Does Las Vegas Sands Ponder Future Growth Prospects?
Recently, they report 2.4 billion US as their 12-month net income. Additionally, they project net income by 2020 is slightly higher at $2.5 billion. When it comes to the long-term view going out three years, the consensus from 18 industry analysts leans towards a positive outlook. This projection includes a small but steady rise in growth projections through 2024. Net income could reach $3 billion by 2022 with an annual growth rate of in LVS earnings of 8.3 percent. Furthermore, LVS’s profit margin expands from 18 percent to 20 percent.
The future Las Vegas Casino Hotels On The Strip projections focuses on three main areas:
1. Financial Health. – Indeed, these factors include the company balance sheet. Also, they include key factors such as leverage and risk.
2. Valuation.- What is the net worth of LVS at the present moment? Is the stock price undervalued or overvalued in today’s marketplace? Are any growth projections factored into the intrinsic value?
3. Other High-Growth Alternatives.. LVS stock vs. similar industry stocks with larger growth potential.
The Most Profitable Las Vegas Casino Hotels On The Strip
As a big piece of the total outlook, one of LVS’s most profitable casinos on a global scale was recently profiled on The Motely Fool, LLC, Marina Bay Sands in Singapore has been described as the most profitable resort and casino in the history of the gaming industry. As one of just two casinos in this region of the world, this crown jewel generates more than $1.5 billion in property EBITDA.
Each year in operation, it has always generated high cash flow in a very successful run in Asia’s gaming market. Following a solid decade of success, the winds of change could be on the horizon. Asia’s casino gaming market continues to become more and more competitive with each passing year. With that lofty EBITDA figure starting to stagnate, Marina Bay Sands’ future growth could stagnate as well.
There was actually a decline in 2018. LVS cites a rolling chip and non-rolling chip volume as it pertains to table play. The measures discriminate between VIP play and mass market play factoring out luck. Every quarter in 2018 reflected a downturn in VIP play. Mass-market play declined in three of the four quarters that year.
It was also reported that nearly a third of LVS’s entire EBITDA is generated by Marina Bay Sands. If both revenue and EBITDA are on the decline, this would not bode well for LVS’s future growth potential as a whole.