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Why Is Las Vegas Sands (LVS) Up 17.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have added about 17.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Las Vegas Sands due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Las Vegas Sands Q3 Earnings Miss Estimates, Revenues Top
Las Vegas Sands reported mixed third-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. However, the top and the bottom line increased on a year-over-year basis.
Robert G. Goldstein, chairman and chief executive officer, Las Vegas Sands, stated, "While travel restrictions continued to impact our financial results this quarter, we were pleased to see further progress in Singapore's recovery. We remain enthusiastic about the opportunity to welcome more guests back to our properties as greater volumes of visitors are able to travel to both Singapore and Macao."
Earnings & Revenue Discussion
During third-quarter 2022, the company reported an adjusted loss per share of 27 cents, wider than the Zacks Consensus Estimate of a loss of 20 cents. In the prior-year quarter, the company reported an adjusted loss of 45 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $183 million compared with $157 million reported in the prior-year quarter.
Quarterly revenues of $1,005 million beat the consensus mark of $976 million by 3%. Also, the figure increased 17.3% from the $857 million reported in the prior-year quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts:
The Venetian Macao
During the third quarter of 2022, net revenues from Venetian Macao were $104 million compared with $253 million reported in the prior-year quarter. The downside was caused by a decline in casino, rooms and mall revenues.
During the quarter, revenues from casinos, rooms and malls were $60 million, $10 million and $27 million compared with $176 million, $18 million and $49 million, respectively, in the prior-year quarter. Convention, Retail and Other revenues were $4 million, flat year over year. Food and beverage revenues came in at $3 million compared with $6 million reported in the year-ago quarter.
Adjusted property EBITDA during the third quarter totaled ($37) million against $40 million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $292 million and $115 million, respectively, compared with $632 million and $781 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $50 million compared with $72 million reported in the prior-year quarter. Occupancy rates came in at 36.7% compared with 48.4% in the prior-year quarter.
The Londoner Macao
During the third quarter, net revenues from The Londoner Macao amounted to $57 million compared with $123 million reported in the prior-year quarter. The downside was caused by a fall in casino, rooms, food and beverage and mall revenues.
During the quarter, revenues from casinos, rooms, food and beverage and mall totaled $24 million, $10 million, $4 million and $9 million compared with $80 million, $22 million, $6 million and $13 million, respectively, in the prior-year quarter. During the quarter, revenues from convention, retail and other totaled $10 million compared with $2 million reported in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled ($60) million compared with ($33) million reported in the prior-year quarter.
Non-rolling chip drop volumes were $116 million compared with $388 million reported in the prior-year quarter. Rolling chip drop volumes during the quarter were $179 million compared with $1,266 million reported in the prior-year quarter
During the quarter, the segment’s hotel RevPAR was $37 million compared with $60 million reported in the prior-year quarter. Occupancy rates came in at 23.2% compared with 38.8% in the prior-year quarter.
The Parisian Macao
During the third quarter, net revenues from The Parisian Macao were $21 million compared with $102 million reported in the prior-year quarter. The downside was primarily due to a decline in casino, rooms, food and beverage and mall revenues.
During the quarter, revenues from casinos, rooms, food and beverage and mall totaled $8 million, $5 million, $1 million and $5 million compared with $75 million, $12 million, $4 million and $10 million, respectively, in the prior-year quarter.
Non-rolling chip drop volumes were $60 million compared with $246 million reported in the prior-year quarter. Rolling chip drop volumes amounted to $26 million compared with $175 million in the year-ago quarter.
The segment’s hotel RevPAR was $36 million compared with $61 million reported in the prior-year quarter. Occupancy rates came in at 37.1% compared with 52.5% in the prior-year quarter.
The Plaza Macao and Four Seasons Macao
During the third quarter, net revenues from The Plaza Macao and Four Seasons Macao were $57 million compared with $111 million reported in the prior-year quarter. The downside can be attributed to a fall in casino, rooms and mall revenues.
During the quarter, casino, rooms and mall revenues came in at $27 million, $5 million and $23 million compared with $44 million, $11 million and $52 million, respectively, in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $6 million compared with $42 million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $90 million and $212 million compared with $269 million and $308 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $90 million compared with $181 million reported in the year-ago quarter. Occupancy rates came in at 19.8% compared with 41.3% in the prior-year quarter.
Sands Macao
During the third quarter, net revenues from Sands Macao were $11 million compared with $20 million reported in the prior-year quarter. The downside was primarily due to a decline in casino revenues. In the quarter under review, casino revenues totaled $8 million compared with $16 million reported in the prior-year quarter.
Adjusted property EBITDA in the third quarter totaled ($22) million compared with ($21) million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $47 million and $16 million, respectively, compared with $89 million and $137 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $69 million compared with $85 million in the year-ago quarter. Occupancy rates came in at 43.8% compared with 63.2% in the prior-year quarter.
Marina Bay Sands, Singapore
During the third quarter, net revenues from Marina Bay Sands totaled $756 million compared with $249 million reported in the prior-year quarter. The upside was primarily driven by an increase in casino, rooms, mall and food and beverage revenues.
During the quarter under review, revenues from casinos and food and beverage totaled $510 million and $71 million compared with $142 million and $21 million reported in the prior-year quarter. Revenues from rooms, mall, convention, retail and other came in at $92 million, $55 million and $28 million compared with $35 million, $41 million and $10 million, respectively, reported in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $343 million compared with $15 million reported in the year-ago quarter.
Non-rolling chip drop and rolling chip volumes were $1,258 million and $6,837 million, respectively, compared with $638 million and $459 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $494 million compared with $169 million reported in the prior-year quarter. Occupancy rates were 96% compared with 71.7% in the prior-year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $191 million in the third quarter of 2022, compared with $47 million reported in the prior-year quarter.
Balance Sheet
As of Sep 30, 2022, unrestricted cash balances amounted to $5.84 billion compared with $6.45 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $15.27 billion compared with $15.35 billion as of Jun 30, 2022.
In the reported quarter, capital expenditures totaled $169 million, thanks to construction, development and maintenance activities of $48 million in Macao and $108 million at Marina Bay Sands.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -471.43% due to these changes.
VGM Scores
At this time, Las Vegas Sands has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile 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. Notably, Las Vegas Sands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Las Vegas Sands (LVS) Up 17.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have added about 17.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Las Vegas Sands due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Las Vegas Sands Q3 Earnings Miss Estimates, Revenues Top
Las Vegas Sands reported mixed third-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. However, the top and the bottom line increased on a year-over-year basis.
Robert G. Goldstein, chairman and chief executive officer, Las Vegas Sands, stated, "While travel restrictions continued to impact our financial results this quarter, we were pleased to see further progress in Singapore's recovery. We remain enthusiastic about the opportunity to welcome more guests back to our properties as greater volumes of visitors are able to travel to both Singapore and Macao."
Earnings & Revenue Discussion
During third-quarter 2022, the company reported an adjusted loss per share of 27 cents, wider than the Zacks Consensus Estimate of a loss of 20 cents. In the prior-year quarter, the company reported an adjusted loss of 45 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $183 million compared with $157 million reported in the prior-year quarter.
Quarterly revenues of $1,005 million beat the consensus mark of $976 million by 3%. Also, the figure increased 17.3% from the $857 million reported in the prior-year quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts:
The Venetian Macao
During the third quarter of 2022, net revenues from Venetian Macao were $104 million compared with $253 million reported in the prior-year quarter. The downside was caused by a decline in casino, rooms and mall revenues.
During the quarter, revenues from casinos, rooms and malls were $60 million, $10 million and $27 million compared with $176 million, $18 million and $49 million, respectively, in the prior-year quarter. Convention, Retail and Other revenues were $4 million, flat year over year. Food and beverage revenues came in at $3 million compared with $6 million reported in the year-ago quarter.
Adjusted property EBITDA during the third quarter totaled ($37) million against $40 million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $292 million and $115 million, respectively, compared with $632 million and $781 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $50 million compared with $72 million reported in the prior-year quarter. Occupancy rates came in at 36.7% compared with 48.4% in the prior-year quarter.
The Londoner Macao
During the third quarter, net revenues from The Londoner Macao amounted to $57 million compared with $123 million reported in the prior-year quarter. The downside was caused by a fall in casino, rooms, food and beverage and mall revenues.
During the quarter, revenues from casinos, rooms, food and beverage and mall totaled $24 million, $10 million, $4 million and $9 million compared with $80 million, $22 million, $6 million and $13 million, respectively, in the prior-year quarter. During the quarter, revenues from convention, retail and other totaled $10 million compared with $2 million reported in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled ($60) million compared with ($33) million reported in the prior-year quarter.
Non-rolling chip drop volumes were $116 million compared with $388 million reported in the prior-year quarter. Rolling chip drop volumes during the quarter were $179 million compared with $1,266 million reported in the prior-year quarter
During the quarter, the segment’s hotel RevPAR was $37 million compared with $60 million reported in the prior-year quarter. Occupancy rates came in at 23.2% compared with 38.8% in the prior-year quarter.
The Parisian Macao
During the third quarter, net revenues from The Parisian Macao were $21 million compared with $102 million reported in the prior-year quarter. The downside was primarily due to a decline in casino, rooms, food and beverage and mall revenues.
During the quarter, revenues from casinos, rooms, food and beverage and mall totaled $8 million, $5 million, $1 million and $5 million compared with $75 million, $12 million, $4 million and $10 million, respectively, in the prior-year quarter.
Non-rolling chip drop volumes were $60 million compared with $246 million reported in the prior-year quarter. Rolling chip drop volumes amounted to $26 million compared with $175 million in the year-ago quarter.
The segment’s hotel RevPAR was $36 million compared with $61 million reported in the prior-year quarter. Occupancy rates came in at 37.1% compared with 52.5% in the prior-year quarter.
The Plaza Macao and Four Seasons Macao
During the third quarter, net revenues from The Plaza Macao and Four Seasons Macao were $57 million compared with $111 million reported in the prior-year quarter. The downside can be attributed to a fall in casino, rooms and mall revenues.
During the quarter, casino, rooms and mall revenues came in at $27 million, $5 million and $23 million compared with $44 million, $11 million and $52 million, respectively, in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $6 million compared with $42 million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $90 million and $212 million compared with $269 million and $308 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $90 million compared with $181 million reported in the year-ago quarter. Occupancy rates came in at 19.8% compared with 41.3% in the prior-year quarter.
Sands Macao
During the third quarter, net revenues from Sands Macao were $11 million compared with $20 million reported in the prior-year quarter. The downside was primarily due to a decline in casino revenues. In the quarter under review, casino revenues totaled $8 million compared with $16 million reported in the prior-year quarter.
Adjusted property EBITDA in the third quarter totaled ($22) million compared with ($21) million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $47 million and $16 million, respectively, compared with $89 million and $137 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $69 million compared with $85 million in the year-ago quarter. Occupancy rates came in at 43.8% compared with 63.2% in the prior-year quarter.
Marina Bay Sands, Singapore
During the third quarter, net revenues from Marina Bay Sands totaled $756 million compared with $249 million reported in the prior-year quarter. The upside was primarily driven by an increase in casino, rooms, mall and food and beverage revenues.
During the quarter under review, revenues from casinos and food and beverage totaled $510 million and $71 million compared with $142 million and $21 million reported in the prior-year quarter. Revenues from rooms, mall, convention, retail and other came in at $92 million, $55 million and $28 million compared with $35 million, $41 million and $10 million, respectively, reported in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $343 million compared with $15 million reported in the year-ago quarter.
Non-rolling chip drop and rolling chip volumes were $1,258 million and $6,837 million, respectively, compared with $638 million and $459 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $494 million compared with $169 million reported in the prior-year quarter. Occupancy rates were 96% compared with 71.7% in the prior-year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $191 million in the third quarter of 2022, compared with $47 million reported in the prior-year quarter.
Balance Sheet
As of Sep 30, 2022, unrestricted cash balances amounted to $5.84 billion compared with $6.45 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $15.27 billion compared with $15.35 billion as of Jun 30, 2022.
In the reported quarter, capital expenditures totaled $169 million, thanks to construction, development and maintenance activities of $48 million in Macao and $108 million at Marina Bay Sands.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -471.43% due to these changes.
VGM Scores
At this time, Las Vegas Sands has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile 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. Notably, Las Vegas Sands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.