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Las Vegas Sands (LVS) Up 7% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have added about 7% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Las Vegas Sands Q4 Earnings Lag Estimates, Revenues Top
Las Vegas Sands reported mixed fourth-quarter 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, the company reported continued improvement in the operating environment in Macao and Singapore. In Macao, the company reported a sustained recovery across all segments. Singapore’s Marina Bay Sands demonstrated solid financial and operational performance. The introduction of new suite options and improved services is in line with the improving airlift capacity and the continuous recovery in travel and tourism spending, especially from China and the broader region.
Q4 Earnings & Revenues
During fourth-quarter 2023, LVS reported adjusted earnings per share (EPS) of 57 cents, missing the Zacks Consensus Estimate of 63 cents. In the year-ago quarter, it incurred an adjusted loss of 19 cents per share. Interest expenses (net of amounts capitalized) amounted to $190 million compared with $201 million reported in the prior-year quarter.
Quarterly revenues of $2.92 billion surpassed the consensus mark of $2.9 billion. The figure increased 161% from $1.1 billion reported in the year-ago quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts (all figures are compared with the prior-year quarter’s reported levels):
The Venetian Macao
Net revenues from The Venetian Macao were $748 million compared with $201 million in the prior-year quarter. The upside was driven by a rise in casino, rooms and mall revenues. Our estimate was $706.6 million.
Quarterly revenues from casinos, rooms and malls were $607 million, $49 million and $66 million, respectively, compared with the prior-year quarter’s reported figures of $130 million, $17 million and $43 million. Convention, retail and other revenues were $10 million compared with $6 million reported a year ago. Food and beverage revenues were $16 million compared with $5 million in the last year quarter.
Adjusted property EBITDA totaled $302 million compared with $14 million in fourth-quarter 2022. Our estimate for the metric was $294.6 million. Non-rolling chip drop and rolling chip volume were $2.5 billion and $1.2 billion compared with the year-ago quarter’s reported figure of $491 million and $197 million, respectively. The segment’s hotel revenue per available room (RevPAR) was $200 million compared with $73 million reported in the year-ago period. Occupancy rates came in at 98.7% compared with prior year’s reported value of 50.2%.
The Londoner Macao
Net revenues from The Londoner Macao amounted to $589 million compared with $93 million reported in the prior-year period. The upside was backed by an increase in casinos, rooms and malls and food and beverage revenues. The consensus mark was pegged at $472.2 million.
Revenues from casinos, rooms and food and beverage totaled $433 million, $92 million and $27 million, respectively, compared with the year-ago quarter’s reported figure of $49 million, $18 million and $7 million. Mall revenues increased to $19 million from $12 million in the year-ago quarter. Quarterly revenues from convention, retail and other totaled $18 million, up from $7 million reported in the prior year.
Adjusted property EBITDA totaled $190 million against ($42) million reported a year ago. Our estimate for the metric was pegged at $139.2 million. Non-rolling chip drop and rolling chip volume were $1.9 billion and $2.3 billion, respectively, compared with the year-ago quarter’s reported figures of $252 million and $165 million. The segment’s hotel RevPAR was $180 million compared with $52 million in the prior-year quarter. Occupancy rates came in at 96.8% compared with 30.7% reported in the fourth quarter of 2022.
The Parisian Macao
Net revenues from The Parisian Macao were $222 million, up from $51 million reported a year ago. The uptick was primarily due to an improvement in casino, rooms and food and beverage revenues. The consensus mark was pegged at $242.8 million.
Revenues from casinos, rooms, and food and beverage were $163 million, $35 million and $14 million, respectively, compared with the year-ago quarter’s reported figures of $33 million, $10 million and $3 million.
Adjusted property EBITDA totaled $68 million against ($26) million reported a year ago. Our estimate for the metric was $88.2 million. Non-rolling chip drop was $778 million compared with $123 million reported a year ago. Rolling chip volume amounted to $31 million compared with $48 million reported in fourth-quarter 2022. The segment’s hotel RevPAR increased to $151 million from the prior year’s reported figure of $42 million. Occupancy rates came in at 98.8% compared with prior year’s reported value of 36.1%.
The Plaza Macao and Four Seasons Macao
Net revenues from The Plaza Macao and Four Seasons Macao were $192 million, up from $75 million reported a year ago. The uptrend can be attributed to a rise in casino, rooms and mall revenues. Our estimate for the metric was $216.6 million.
Casino, rooms and mall revenues were $95 million, $25 million and $62 million, respectively, compared with the year-ago quarter’s figures of $26 million, $9 million and $37 million.
Adjusted property EBITDA totaled $71 million compared with $26 million reported in the prior-year quarter. Our estimate was $112.5 million. Non-rolling chip drop and rolling chip volume were $682 million and $2.4 billion, respectively, compared with $90 million and $177 million reported in the prior-year quarter. The segment’s hotel RevPAR was $416 million compared with $140 million reported in the fourth quarter of 2022. Occupancy rates were 87.8% compared with the prior year’s reported value of 31%.
Sands Macao
Net revenues from Sands Macao were $81 million compared with the year-ago period’s value of $17 million. This was mainly due to a rise in casino revenues. Casino revenues totaled $72 million compared with $14 million reported in the prior-year quarter. Our projections for Sands Macao revenues were $104 million.
Adjusted property EBITDA totaled $17 million against ($20) million in the prior-year period. Our estimate was $22.3 million. Non-rolling chip drop and rolling chip volume were $410 million and $28 million, respectively, compared with the year-ago quarter’s reported values of $56 million and $30 million. The segment’s hotel RevPAR was $173 million, up from the year-ago figure of $67 million. Occupancy rates came in at 98.9% compared with 44.1% reported in the prior-year quarter.
Marina Bay Sands, Singapore
Net revenues from Marina Bay Sands totaled $1.06 billion, up from $682 million reported in the prior-year quarter. The upside was primarily driven by an increase in casino, rooms, food and beverage, and mall revenues. Our estimate for the metric was $1.03 billion.
Revenues from casinos, and food and beverage totaled $741 million and $92 million, up from the year-ago quarter’s reported values of $402 million and $84 million, respectively. Rooms, malls, and convention, retail and other generated revenues were $117 million, $76 million and $35 million, respectively, compared with $99 million, $67 million and $30 million reported in the year-ago quarter.
Adjusted property EBITDA totaled $544 million compared with $273 million reported in the prior-year quarter. We expected the value of this metric to be $558 million. Non-rolling chip drop and rolling chip volume were $1.9 billion and $7.2 billion, respectively, compared with the year-ago quarter’s reported values of $1.5 billion and $7.1 billion. The segment’s hotel RevPAR was $611 million compared with $541 million in fourth quarter of 2022. Occupancy rates were 94.4% compared with 98.3% reported in prior year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $1.2 billion in the fourth-quarter 2023 compared with $222 million reported in the year-ago quarter.
2023 Highlights
Net revenues in 2023 came in at $10.4 billion compared with $4.1 billion in 2022.
Operating income (loss) in 2023 came in at $2.3 billion against ($0.8) billion reported in 2022.
In 2023, diluted earnings per share came in at $1.89 per share against ($1.20) reported in the previous year.
Balance Sheet
As of Dec 31, 2023, unrestricted cash balances amounted to $5.11 billion compared with $5.57 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $14.01 billion, down from $14.17 billion in the earlier quarter.
In the reported quarter, capital expenditures totaled $325 million, thanks to construction, development and maintenance activities of $109 million in Macao, $184 million at Marina Bay Sands and $32 million in corporate, development and other.
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 -7.64% due to these changes.
VGM Scores
At this time, Las Vegas Sands has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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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Las Vegas Sands (LVS) Up 7% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have added about 7% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Las Vegas Sands Q4 Earnings Lag Estimates, Revenues Top
Las Vegas Sands reported mixed fourth-quarter 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, the company reported continued improvement in the operating environment in Macao and Singapore. In Macao, the company reported a sustained recovery across all segments. Singapore’s Marina Bay Sands demonstrated solid financial and operational performance. The introduction of new suite options and improved services is in line with the improving airlift capacity and the continuous recovery in travel and tourism spending, especially from China and the broader region.
Q4 Earnings & Revenues
During fourth-quarter 2023, LVS reported adjusted earnings per share (EPS) of 57 cents, missing the Zacks Consensus Estimate of 63 cents. In the year-ago quarter, it incurred an adjusted loss of 19 cents per share. Interest expenses (net of amounts capitalized) amounted to $190 million compared with $201 million reported in the prior-year quarter.
Quarterly revenues of $2.92 billion surpassed the consensus mark of $2.9 billion. The figure increased 161% from $1.1 billion reported in the year-ago quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts (all figures are compared with the prior-year quarter’s reported levels):
The Venetian Macao
Net revenues from The Venetian Macao were $748 million compared with $201 million in the prior-year quarter. The upside was driven by a rise in casino, rooms and mall revenues. Our estimate was $706.6 million.
Quarterly revenues from casinos, rooms and malls were $607 million, $49 million and $66 million, respectively, compared with the prior-year quarter’s reported figures of $130 million, $17 million and $43 million. Convention, retail and other revenues were $10 million compared with $6 million reported a year ago. Food and beverage revenues were $16 million compared with $5 million in the last year quarter.
Adjusted property EBITDA totaled $302 million compared with $14 million in fourth-quarter 2022. Our estimate for the metric was $294.6 million. Non-rolling chip drop and rolling chip volume were $2.5 billion and $1.2 billion compared with the year-ago quarter’s reported figure of $491 million and $197 million, respectively. The segment’s hotel revenue per available room (RevPAR) was $200 million compared with $73 million reported in the year-ago period. Occupancy rates came in at 98.7% compared with prior year’s reported value of 50.2%.
The Londoner Macao
Net revenues from The Londoner Macao amounted to $589 million compared with $93 million reported in the prior-year period. The upside was backed by an increase in casinos, rooms and malls and food and beverage revenues. The consensus mark was pegged at $472.2 million.
Revenues from casinos, rooms and food and beverage totaled $433 million, $92 million and $27 million, respectively, compared with the year-ago quarter’s reported figure of $49 million, $18 million and $7 million. Mall revenues increased to $19 million from $12 million in the year-ago quarter. Quarterly revenues from convention, retail and other totaled $18 million, up from $7 million reported in the prior year.
Adjusted property EBITDA totaled $190 million against ($42) million reported a year ago. Our estimate for the metric was pegged at $139.2 million. Non-rolling chip drop and rolling chip volume were $1.9 billion and $2.3 billion, respectively, compared with the year-ago quarter’s reported figures of $252 million and $165 million. The segment’s hotel RevPAR was $180 million compared with $52 million in the prior-year quarter. Occupancy rates came in at 96.8% compared with 30.7% reported in the fourth quarter of 2022.
The Parisian Macao
Net revenues from The Parisian Macao were $222 million, up from $51 million reported a year ago. The uptick was primarily due to an improvement in casino, rooms and food and beverage revenues. The consensus mark was pegged at $242.8 million.
Revenues from casinos, rooms, and food and beverage were $163 million, $35 million and $14 million, respectively, compared with the year-ago quarter’s reported figures of $33 million, $10 million and $3 million.
Adjusted property EBITDA totaled $68 million against ($26) million reported a year ago. Our estimate for the metric was $88.2 million. Non-rolling chip drop was $778 million compared with $123 million reported a year ago. Rolling chip volume amounted to $31 million compared with $48 million reported in fourth-quarter 2022. The segment’s hotel RevPAR increased to $151 million from the prior year’s reported figure of $42 million. Occupancy rates came in at 98.8% compared with prior year’s reported value of 36.1%.
The Plaza Macao and Four Seasons Macao
Net revenues from The Plaza Macao and Four Seasons Macao were $192 million, up from $75 million reported a year ago. The uptrend can be attributed to a rise in casino, rooms and mall revenues. Our estimate for the metric was $216.6 million.
Casino, rooms and mall revenues were $95 million, $25 million and $62 million, respectively, compared with the year-ago quarter’s figures of $26 million, $9 million and $37 million.
Adjusted property EBITDA totaled $71 million compared with $26 million reported in the prior-year quarter. Our estimate was $112.5 million. Non-rolling chip drop and rolling chip volume were $682 million and $2.4 billion, respectively, compared with $90 million and $177 million reported in the prior-year quarter. The segment’s hotel RevPAR was $416 million compared with $140 million reported in the fourth quarter of 2022. Occupancy rates were 87.8% compared with the prior year’s reported value of 31%.
Sands Macao
Net revenues from Sands Macao were $81 million compared with the year-ago period’s value of $17 million. This was mainly due to a rise in casino revenues. Casino revenues totaled $72 million compared with $14 million reported in the prior-year quarter. Our projections for Sands Macao revenues were $104 million.
Adjusted property EBITDA totaled $17 million against ($20) million in the prior-year period. Our estimate was $22.3 million. Non-rolling chip drop and rolling chip volume were $410 million and $28 million, respectively, compared with the year-ago quarter’s reported values of $56 million and $30 million. The segment’s hotel RevPAR was $173 million, up from the year-ago figure of $67 million. Occupancy rates came in at 98.9% compared with 44.1% reported in the prior-year quarter.
Marina Bay Sands, Singapore
Net revenues from Marina Bay Sands totaled $1.06 billion, up from $682 million reported in the prior-year quarter. The upside was primarily driven by an increase in casino, rooms, food and beverage, and mall revenues. Our estimate for the metric was $1.03 billion.
Revenues from casinos, and food and beverage totaled $741 million and $92 million, up from the year-ago quarter’s reported values of $402 million and $84 million, respectively. Rooms, malls, and convention, retail and other generated revenues were $117 million, $76 million and $35 million, respectively, compared with $99 million, $67 million and $30 million reported in the year-ago quarter.
Adjusted property EBITDA totaled $544 million compared with $273 million reported in the prior-year quarter. We expected the value of this metric to be $558 million. Non-rolling chip drop and rolling chip volume were $1.9 billion and $7.2 billion, respectively, compared with the year-ago quarter’s reported values of $1.5 billion and $7.1 billion. The segment’s hotel RevPAR was $611 million compared with $541 million in fourth quarter of 2022. Occupancy rates were 94.4% compared with 98.3% reported in prior year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $1.2 billion in the fourth-quarter 2023 compared with $222 million reported in the year-ago quarter.
2023 Highlights
Net revenues in 2023 came in at $10.4 billion compared with $4.1 billion in 2022.
Operating income (loss) in 2023 came in at $2.3 billion against ($0.8) billion reported in 2022.
In 2023, diluted earnings per share came in at $1.89 per share against ($1.20) reported in the previous year.
Balance Sheet
As of Dec 31, 2023, unrestricted cash balances amounted to $5.11 billion compared with $5.57 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $14.01 billion, down from $14.17 billion in the earlier quarter.
In the reported quarter, capital expenditures totaled $325 million, thanks to construction, development and maintenance activities of $109 million in Macao, $184 million at Marina Bay Sands and $32 million in corporate, development and other.
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 -7.64% due to these changes.
VGM Scores
At this time, Las Vegas Sands has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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.