With The Stock Down 14% Year, Will Strong Singapore Business Drive LVS Stock Higher Post Q2?

Company Performance - Las Vegas Sands is expected to report Q2 2024 revenues of approximately $2.85 billion, an 11% increase year-on-year, and earnings of about $0.60 per share, reflecting a 30% growth compared to last year, driven by a rebound in Macau and strong performance in Singapore [1] - The Macau business, which constituted over 60% of pre-pandemic revenue, is experiencing a strong recovery due to the relaxation of Covid-19 restrictions, with April 2023 tourist arrivals reaching 2,600,717, a 14.4% increase year-on-year, and 76% of arrivals compared to April 2019 [1] - The Marina Bay Sands property in Singapore remains the largest profit driver for the company, with Q1 2024 Adjusted Property EBITDA rising by about 52% to $597 million, indicating continued strength in tourist inflows and spending [1] Stock Performance - LVS stock has declined by 25% from $60 in early January 2021 to around $45 currently, while the S&P 500 has increased by about 45% during the same period, highlighting underperformance [2] - The stock's returns were -37% in 2021, 28% in 2022, and 2% in 2023, indicating inconsistent performance compared to the S&P 500, which had returns of 27% in 2021, -19% in 2022, and 24% in 2023 [2] Market Outlook - The financial performance of the company is expected to improve as demand in Macau continues to rise, with per-capita spending anticipated to grow, and Singapore's market remains stable and high-value [3] - The company is investing approximately $1.75 billion into its Singapore property to enhance high-value tourism [3] - As of March 2024, the company's liquidity position is reasonable with cash holdings around $5 billion, but it has a total debt of $13.9 billion, indicating high leverage [3] - The stock is valued at about $55 per share, which is approximately 31% above the current market price, with a reassessment planned post-Q2 earnings [3]