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Las Vegas Sands (LVS) Q2 Earnings & Revenues Lag Estimates

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Las Vegas Sands Corp. (LVS - Free Report) reported second-quarter 2021 results, with earnings and revenues missing the Zacks Consensus Estimate. However, the top and bottom line improved on a year-over-year basis.

Robert G. Goldstein, chairman and CEO, stated, "We remain confident in the eventual recovery in travel and tourism spending across our markets.  Demand for our offerings from customers who have been able to visit remains robust, but pandemic-related travel restrictions in both Macao and Singapore continue to limit visitation and hinder our current financial performance."

Following the announcements, the company’s shares fell 3.3% in after-hour trading session on Jul 21.

Earnings & Revenue Discussion

During second-quarter 2021, the company reported adjusted loss per share of 26 cents, wider than the Zacks Consensus Estimate of a loss of 19 cents. In the prior-year quarter, the company had reported adjusted loss of 86 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $158 million compared with $114 million in the prior-year quarter.

Las Vegas Sands Corp. Price, Consensus and EPS Surprise

 

Las Vegas Sands Corp. Price, Consensus and EPS Surprise

Las Vegas Sands Corp. price-consensus-eps-surprise-chart | Las Vegas Sands Corp. Quote

 

Quarterly revenues of $1,173 million missed the consensus mark of $1,394 million. However, the figure improved drastically from $62 million, reported in the prior-year quarter on account of improved occupancy rates and RevPAR.

Asian Operations

Las Vegas Sands’ Asia business includes the following resorts:

The Venetian Macao

During the second quarter, net revenues from Venetian Macao came in at $391 million compared with $28 million reported in the prior-year quarter. The upside was primarily driven by a rise in casino, rooms, food and beverage and mall revenues.

During the quarter, revenues from casino, rooms, food and beverage and mall came in at $307 million, $24 million, $7 million and $49 million compared with $5 million, $1 million, $1 million and $18 million, respectively, in the prior year quarter. Convention, Retail and Other revenues came in at $4 million compared with $3 million reported in the prior-year quarter.

Adjusted property EBITDA during the first quarter totaled $108 million against ($97) million in the prior-year quarter.
 
Both non-rolling chip drop and rolling chip volumes came in at $999 million and $1,510 million, compared with $16 million and $108 million, reported in the prior year quarter.

During the quarter, the segment’s hotel RevPAR came in at $93 million compared with $5 million reported in the prior-year quarter. Occupancy rates came in at 58.6% compared with 2.1% in the prior-year quarter.

The Londoner Macao

During the second quarter, net revenues from The Londoner Macao came in at $189 million compared with $10 million reported in the prior-year quarter. The upside was primarily driven by a rise in casino, rooms, food and beverage and mall revenues.

During the quarter, revenues from casino, food and beverage and mall came in at $133 million, $9 million and $16 million compared with $1 million, $1 million and $7 million, respectively, in the prior-year quarter. In the reported quarter, rooms revenues came in at $28 million compared with no revenues in the prior-year quarter. Convention, Retail and Other revenues came in at $3 million compared with $1 million reported in the prior-year quarter.

Adjusted property EBITDA in the reported quarter totaled ($5) million compared with ($79) million reported in the prior-year quarter.

Non-rolling chip drop volumes came in at $551 million compared with $6 million reported in the prior-year quarter. Rolling chip drop volumes during the quarter came in at $1,126 million.

During the quarter, the segment’s hotel RevPAR came in at $67 million compared with $2 million reported in the prior year quarter. Occupancy rates came in at 44.2% compared with 1.1% in the prior-year quarter.

The Parisian Macao

During the second quarter, net revenues from The Parisian Macao came in at $101 million against ($23) million reported in the prior-year quarter. The upside was primarily driven by a rise in casino, rooms, food and beverage and mall revenues.

During the quarter, revenues from casino, rooms, food and beverage and mall came in at $69 million, $17 million, $4 million and $10 million compared with ($30) million, $1 million, $1 million and $4 million, respectively, in the prior-year quarter.

Non-rolling chip drop volumes came in at $358 million compared with $6 million reported in the prior-year quarter. However, rolling chip drop volumes came in at $32 million compared with $382 million reported in the year-ago quarter.

During the quarter, the segment’s hotel RevPAR came in at $70 million compared with $5 million reported in the prior-year quarter. Occupancy rates came in at 58.4% compared with 3.5% in the prior-year quarter.

The Plaza Macao and Four Seasons Macao

During the second quarter, net revenues from The Plaza Macao and Four Seasons Macao came in at $125 million, compared with $19 million, reported in the prior year quarter. The upside was primarily driven by a rise in casino, rooms, food and beverage and mall revenues.

During the quarter, revenues from casino, rooms, food and beverage and mall came in at $74 million, $12 million, $5 million and $34 million compared with $8 million, $1 million, $1 million and $9 million, respectively, in the prior-year quarter.

Adjusted property EBITDA in the reported quarter totaled $44 million against ($18) million reported in the prior-year quarter.

Non-rolling chip drop volumes came in at $350 million compared with $19 million reported in the prior-year quarter. However, rolling chip drop volumes came in at $529 million compared with $563 million reported in the year-ago quarter.

During the quarter, the segment’s hotel RevPAR came in at $215 million compared with $22 million reported in the year-ago quarter. Meanwhile, occupancy rates came in at 48.4% compared with 6.2% in the prior-year quarter.

Sands Macao

During the second quarter, net revenues from Sands Macao came in at $42 million compared with $7 million in the prior-year quarter. The upside was primarily driven by a rise in casino revenues. During the quarter, casino revenues came it at $37 million compared with $5 million in the prior-year quarter.

Adjusted property EBITDA in the reported quarter totaled ($13) million compared with ($31) million reported in the prior-year quarter.

Both non-rolling chip drop and rolling chip volumes came in at $131 million and $332 million compared with $28 million and $219 million reported in the prior-year quarter.

During the quarter under review, the segment’s hotel RevPAR came in at $100 million compared with $16 million reported in the year-ago quarter. Occupancy rates came in at 71.1% compared with 10.6% in the prior-year quarter.

Marina Bay Sands, Singapore

During the second quarter, net revenues from Marina Bay Sands came in at $327 million compared with $23 million in the prior-year quarter. The upside was primarily driven by rise in casino, rooms, food and beverage and mall revenues.

During the quarter, revenues from casino, rooms, food and beverage and mall came in at $223 million, $32 million, $24 million and $39 million compared with $7 million, $1 million, $2 million and $3 million, respectively, in the prior-year quarter. However, convention, retail and other revenues came in at $ 9 million compared with $10 million, reported in the prior-year quarter.

Adjusted property EBITDA in the reported quarter totaled $112 million against ($113) million reported in the year ago quarter.

Both non-rolling chip drop and rolling chip volumes came in at $553 million and $612 million compared with $25 million and $122 million reported in the prior-year quarter.

During the quarter, the segment’s hotel RevPAR came in at $150 million compared with $132 million in the prior-year quarter. Meanwhile, occupancy rates came in at 67.9% compared with 40.2% in the prior-year quarter.

Domestic Operations

Las Vegas

During the second quarter, net revenues from Las Vegas operations came in at $290 million compared with $36 million reported in the prior-year quarter. The upside was primarily driven by rise in casino, rooms and food and beverage revenues.

During the quarter, revenues from casino, rooms and food and beverage came in at $110 million, $107 million and $52 million compared with $14 million, $9 million and $6 million, respectively, in the prior-year quarter. Moreover, convention, retail and other revenues surged 300% year over year to $ 21 million.

Adjusted property EBITDA in the reported quarter totaled $51 million against ($122) million reported in the year-ago quarter.

Table games drop were up 265.7%, while slot handle rose 420.8% on a year-over-year basis.

During the reported quarter, RevPAR came in at $170 million compared with $54 million reported in the prior-year quarter. Meanwhile occupancy rates came in at 85.5% compared with 33.5% in the prior-year quarter.

Operating Results

On a consolidated basis, adjusted property EBITDA totaled $244 million in the second quarter against ($425) million reported in the prior-year quarter.

Balance Sheet

As of Jun 30, 2021, unrestricted cash balances amounted to $2.06 billion. Total debt outstanding (excluding finance leases) was $14.42 billion.

In the reported quarter, capital expenditures totaled $157 million, thanks to construction, development and maintenance activities of $129 million in Macao and $27 million at Marina Bay Sands.

Zacks Rank & Key Picks

Las Vegas Sands currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the same space include Boyd Gaming Corporation (BYD - Free Report) , Golden Entertainment, Inc. (GDEN - Free Report) and Red Rock Resorts, Inc. (RRR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Boyd Gaming has three-five-year earnings per share growth rate of 38.8%.

Golden Entertainment’s 2021 earnings are expected to surge 128%.

Red Rock has a trailing four-quarter earnings surprise of 166.2%, on average.

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