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Las Vegas Sands (LVS) Down 1% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Las Vegas Sands due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Las Vegas Sands Q1 Earnings Beat Estimates, Fall Y/Y
Las Vegas Sands reported mixed first-quarter 2021 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. While the bottom line surpassed the consensus mark after missing in the trailing three quarters, the top line lagged the estimate after beating in the preceding two quarters. Following the results, the company’s shares declined 1.3% in after-hour trading session on Apr 21.
Earnings & Revenue Discussion
During first-quarter 2020, the company recorded adjusted loss per share of 25 cents, narrower than the Zacks Consensus Estimate of a loss of 27 cents. In the prior-year quarter, the company had reported adjusted loss of 9 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $154 million compared with $128 million in the prior-year quarter.
Quarterly revenues of $1,196 million missed the consensus mark of $1,281 million. The figure also declined 15.6% from the year-ago quarter’s figure. Notably, the top line was impacted by lower occupancy rates and RevPAR.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts:
The Venetian Macao
During the first quarter, net revenues declined 7.9% year over year to $340 million. Casino and mall revenues amounted to $266 million and $46 million, up 6% and 58.6%, respectively. Food and beverage revenues rose 20% year over year to $6 million. Convention, Retail and Other and rooms revenues contracted 66.7% and 9.5%, year over year to $3 million and $19 million, respectively.
Adjusted property EBITDA during the first quarter totaled $82 million compared with $49 million in the prior-year quarter.
Non-rolling chip drop increased 11.1% and rolling chip volumes fell 45.8% on a year-over-year basis.
During the quarter, the segment’s hotel RevPAR declined 20.4% year over year to $74 million, while occupancy rates came in at 47.2% compared with 39.2% in the prior-year quarter.
The Londoner Macao
During the first quarter, net revenues slumped 19.4% year over year to $137 million due to declines of 26%, 29.6% and 12.5% in casino, rooms and food and beverage revenues, respectively. However, mall as well as convention, retail and other revenues increased 55.6% and 100% year over year, respectively.
Adjusted property EBITDA came in at ($23) million.
Non-rolling chip drop fell 26.6%, while rolling chip volume soared 213.2% year over year.
During the quarter, the segment’s hotel RevPAR decreased 9% year over year to $61 million, while occupancy rates came in at 35.5% compared with 38.1% in the prior-year quarter.
The Parisian Macao
During the first quarter, revenues amounted to $87 million, down 38.3% year over year. The downside was due to a slump of 48.7% in casino revenues. It was further aggravated by declines of 7.7%, 66.7% and 50% in rooms, mall, convention and other retail revenues, respectively.
Adjusted property EBITDA came in at ($8) million, compared with ($3) million in the prior year quarter.
Both non-rolling chip drop and rolling chip volumes plunged 23.1% and 94% year over year, respectively.
During the quarter, the segment’s hotel RevPAR declined 19.1% year over year to $55 million. Occupancy rates came in at 46.7% compared with 40.3% in the prior-year quarter.
The Plaza Macao and Four Seasons Hotel Macao
During the first quarter, net revenues were up 58.9% to $170 million owing to increase of 175%, 33.3%, 139.4%, in casino, food and beverage and mall revenues, respectively.
Adjusted property EBITDA in the reported quarter totaled $70 million, up 150% on a year-over-year basis.
Non-rolling chip drop rose 21.9%, while rolling chip volume declined 11.7% year over year.
During the quarter, the segment’s hotel RevPAR increased 18.9% year over year to $189 million, while occupancy rates came in at 43.7% compared with 48.4% in the prior-year quarter.
Sands Macao
During the first quarter, revenues were down 49.3% year over year to $35 million on account of declines of 51.6%, 50% and 100% in casino, food and beverage as well as convention, retail and other revenues, respectively.
Adjusted property EBITDA in the reported quarter totaled ($18) million, compared with ($1) million in the prior-year quarter.
Both non-rolling chip drop and rolling chip volume fell 51.2% and 4.5% year over year, respectively.
During the quarter under review, the segment’s hotel RevPAR declined 7.5% year over year to $99 million, while occupancy rates came in at 71.5% compared with 59.8% in the prior-year quarter.
Marina Bay Sands, Singapore
During the first quarter, net revenues plunged 30.4% year over year to $426 million due to declines of 31%, 56.8%, 19.5% and 31.3% in casino, rooms, food and beverage, and convention, retail and other revenues, respectively.
Adjusted property EBITDA in the reported quarter totaled $144 million, reflecting a slump of 68.5% on a year-over-year basis.
Both non-rolling chip drop and rolling chip volumes declined 54.8% and 48.9% year over year, respectively.
During the quarter, the segment’s hotel RevPAR fell 57.7% year over year to $143 million, while occupancy rates came in at 63% compared with 81% in the prior-year quarter.
Domestic Operations
Las Vegas
During the first quarter, net revenues from Las Vegas operations dropped 61.9% year over year to $139 million due to declines of 48% and 68% in casino as well as food and beverage revenues, respectively. Rooms revenues also slumped 64.6% year over year. Moreover, convention, retail and other revenues plunged 72.1% year over year.
Adjusted property EBITDA in the reported quarter totaled ($47) million, down 153.4% on a year-over-year basis.
Table games drop were down 24.9%, while slot handle rose 3.6% on a year-over-year basis.
During the reported quarter, RevPAR declined 65.9% year over year to $79 million, while occupancy rates came in at 42.6% compared with 87.2% in the prior-year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $244 million in the first quarter compared with $349 million reported in the prior-year quarter.
Balance Sheet
As of Mar 31, 2021, unrestricted cash balances amounted to $2.07 billion. Total debt outstanding (excluding finance leases) was $14.42 billion.
In the reported quarter, capital expenditures totaled $291 million, thanks to construction, development and maintenance activities of $268 million in Macao and $23 million at Marina Bay Sands.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -87.1% due to these changes.
VGM Scores
At this time, Las Vegas Sands has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Las Vegas Sands has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Las Vegas Sands (LVS) Down 1% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Las Vegas Sands due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Las Vegas Sands Q1 Earnings Beat Estimates, Fall Y/Y
Las Vegas Sands reported mixed first-quarter 2021 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. While the bottom line surpassed the consensus mark after missing in the trailing three quarters, the top line lagged the estimate after beating in the preceding two quarters. Following the results, the company’s shares declined 1.3% in after-hour trading session on Apr 21.
Earnings & Revenue Discussion
During first-quarter 2020, the company recorded adjusted loss per share of 25 cents, narrower than the Zacks Consensus Estimate of a loss of 27 cents. In the prior-year quarter, the company had reported adjusted loss of 9 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $154 million compared with $128 million in the prior-year quarter.
Quarterly revenues of $1,196 million missed the consensus mark of $1,281 million. The figure also declined 15.6% from the year-ago quarter’s figure. Notably, the top line was impacted by lower occupancy rates and RevPAR.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts:
The Venetian Macao
During the first quarter, net revenues declined 7.9% year over year to $340 million. Casino and mall revenues amounted to $266 million and $46 million, up 6% and 58.6%, respectively. Food and beverage revenues rose 20% year over year to $6 million. Convention, Retail and Other and rooms revenues contracted 66.7% and 9.5%, year over year to $3 million and $19 million, respectively.
Adjusted property EBITDA during the first quarter totaled $82 million compared with $49 million in the prior-year quarter.
Non-rolling chip drop increased 11.1% and rolling chip volumes fell 45.8% on a year-over-year basis.
During the quarter, the segment’s hotel RevPAR declined 20.4% year over year to $74 million, while occupancy rates came in at 47.2% compared with 39.2% in the prior-year quarter.
The Londoner Macao
During the first quarter, net revenues slumped 19.4% year over year to $137 million due to declines of 26%, 29.6% and 12.5% in casino, rooms and food and beverage revenues, respectively. However, mall as well as convention, retail and other revenues increased 55.6% and 100% year over year, respectively.
Adjusted property EBITDA came in at ($23) million.
Non-rolling chip drop fell 26.6%, while rolling chip volume soared 213.2% year over year.
During the quarter, the segment’s hotel RevPAR decreased 9% year over year to $61 million, while occupancy rates came in at 35.5% compared with 38.1% in the prior-year quarter.
The Parisian Macao
During the first quarter, revenues amounted to $87 million, down 38.3% year over year. The downside was due to a slump of 48.7% in casino revenues. It was further aggravated by declines of 7.7%, 66.7% and 50% in rooms, mall, convention and other retail revenues, respectively.
Adjusted property EBITDA came in at ($8) million, compared with ($3) million in the prior year quarter.
Both non-rolling chip drop and rolling chip volumes plunged 23.1% and 94% year over year, respectively.
During the quarter, the segment’s hotel RevPAR declined 19.1% year over year to $55 million. Occupancy rates came in at 46.7% compared with 40.3% in the prior-year quarter.
The Plaza Macao and Four Seasons Hotel Macao
During the first quarter, net revenues were up 58.9% to $170 million owing to increase of 175%, 33.3%, 139.4%, in casino, food and beverage and mall revenues, respectively.
Adjusted property EBITDA in the reported quarter totaled $70 million, up 150% on a year-over-year basis.
Non-rolling chip drop rose 21.9%, while rolling chip volume declined 11.7% year over year.
During the quarter, the segment’s hotel RevPAR increased 18.9% year over year to $189 million, while occupancy rates came in at 43.7% compared with 48.4% in the prior-year quarter.
Sands Macao
During the first quarter, revenues were down 49.3% year over year to $35 million on account of declines of 51.6%, 50% and 100% in casino, food and beverage as well as convention, retail and other revenues, respectively.
Adjusted property EBITDA in the reported quarter totaled ($18) million, compared with ($1) million in the prior-year quarter.
Both non-rolling chip drop and rolling chip volume fell 51.2% and 4.5% year over year, respectively.
During the quarter under review, the segment’s hotel RevPAR declined 7.5% year over year to $99 million, while occupancy rates came in at 71.5% compared with 59.8% in the prior-year quarter.
Marina Bay Sands, Singapore
During the first quarter, net revenues plunged 30.4% year over year to $426 million due to declines of 31%, 56.8%, 19.5% and 31.3% in casino, rooms, food and beverage, and convention, retail and other revenues, respectively.
Adjusted property EBITDA in the reported quarter totaled $144 million, reflecting a slump of 68.5% on a year-over-year basis.
Both non-rolling chip drop and rolling chip volumes declined 54.8% and 48.9% year over year, respectively.
During the quarter, the segment’s hotel RevPAR fell 57.7% year over year to $143 million, while occupancy rates came in at 63% compared with 81% in the prior-year quarter.
Domestic Operations
Las Vegas
During the first quarter, net revenues from Las Vegas operations dropped 61.9% year over year to $139 million due to declines of 48% and 68% in casino as well as food and beverage revenues, respectively. Rooms revenues also slumped 64.6% year over year. Moreover, convention, retail and other revenues plunged 72.1% year over year.
Adjusted property EBITDA in the reported quarter totaled ($47) million, down 153.4% on a year-over-year basis.
Table games drop were down 24.9%, while slot handle rose 3.6% on a year-over-year basis.
During the reported quarter, RevPAR declined 65.9% year over year to $79 million, while occupancy rates came in at 42.6% compared with 87.2% in the prior-year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $244 million in the first quarter compared with $349 million reported in the prior-year quarter.
Balance Sheet
As of Mar 31, 2021, unrestricted cash balances amounted to $2.07 billion. Total debt outstanding (excluding finance leases) was $14.42 billion.
In the reported quarter, capital expenditures totaled $291 million, thanks to construction, development and maintenance activities of $268 million in Macao and $23 million at Marina Bay Sands.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -87.1% due to these changes.
VGM Scores
At this time, Las Vegas Sands has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Las Vegas Sands has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.