Las Vegas Sands Corp. (LVS - Free Report) recently reported second-quarter results, with both earnings and revenues missing the Zacks Consensus Estimate.
However, the company’s shares rallied nearly 5% in afterhours trading on Jul 25, after the company stated that though the operating environment in Macau continued to be a drag during the quarter, it is showing signs of stabilization, primarily in the mass market. This mirrors investors’ hope that a turnaround in Macau might be underway.
In fact, the company informed that its Macau properties witnessed a year-over-year increase in both mass gaming volumes and revenues in June, representing the first month of year-over-year growth in mass gaming since Sep 2014.
Meanwhile, adjusted earnings per share (EPS) of 52 cents missed the Zacks Consensus Estimate of 56 cents by 7.1% and declined 13.3% year over year due to lower revenues and profits.
Quarterly net revenues of $2.65 billion missed the Zacks Consensus Estimate of $2.74 billion by 3.2% and declined 9.3% year over year due to weak performance in Macau.
On a consolidated basis, adjusted property EBITDA decreased 6% year over year to $955.1 million during the quarter owing to lower revenues.
Property Details: Asian Operations
The company's Asian business includes the following resorts:
Marina Bay Sands, Singapore
Net revenues declined 0.4% year over year to $710.1 million, owing to a 1.6% decrease in casino revenues and a 3.3% drop in convention retail and other revenues. However, the decrease was partially offset by an 11.6% increase in food and beverage revenues. Adjusted property EBITDA in the quarter was $357 million, down 1.7%.
Meanwhile, Non-Rolling Chip Drop fell 0.7, while Rolling Chip volume decreased 29.1%.
Four Seasons Hotel Macau and Plaza Casino
Net revenues plunged 38.8% to $125 million due to a 46.7% decline in casino revenues, a 25.7% drop in room revenues, a 14.1% fall in food and beverage revenues, and a 25% decrease in convention retail and other revenues. Adjusted property EBITDA decreased 41.2% to $43.7 million.
Notably, Non-Rolling Chip Drop fell 16.8% and Rolling Chip volume decreased a massive 55%.
Sands Macau
Revenues declined 23.4% year over year to $185 million owing to a 23.6% decline in casino revenues, a 10.5% fall in room revenues and a 21.5% drop in food and beverage revenues. Adjusted property EBITDA fell 26.7% to $48.6 million.
Non-Rolling Chip Drop and Rolling Chip volume decreased 15.5% and 16.1%, respectively, during the quarter.
The Venetian Macau
Net revenues decreased 9.9% year over year to $666.1 million due to a 10.3% decline in casino revenues, 11.8% drop in room revenues and 19% plunge in convention, retail and other revenues, partially offset by an increase of 6.1% and 5.8%, respectively, in food and beverage and mall revenues. Adjusted property EBITDA was down 4.2% to $244.4 million in the reported quarter.
Meanwhile, Non-Rolling Chip Drop declined 1.2% and Rolling Chip volume decreased 10%.
Sands Cotai Central
Net revenues fell 14.7% year over year to $472.7 million owing to a 16.5% decline in casino revenues, offset to an extent by 1.1% increase in room revenues, 3.8% rise in food and beverage revenues, 6.8% improvement in mall revenues and 9.3% surge in convention retail and other revenues. Adjusted property EBITDA was $144.1 million, down 12.2%.
Interestingly, Non-Rolling Chip Drop inched up 3.2% while Rolling Chip volume declined 36.1%.
Domestic Operations
Las Vegas Operations
Net revenues from Las Vegas operations, which comprise The Venetian Las Vegas and The Palazzo, increased 3% year over year to $356.5 million driven by an 8.8% increase in room revenues, a 5.8% rise in food and beverage revenues and a 1.7% increase in convention retail and other revenues. However, the increase was partially offset by a 5.2% decline in casino revenues. Adjusted property EBITDA rose 33.8% year over year to $72.5 million.
However, Table Games Drop fell 19.7% in the quarter.
Sands Bethlehem, PA
Net revenues at Sands Bethlehem were $146.5 million in the quarter, up 6.5% year over year, attributable to a 6% increase in casino revenues, a 13% rise in food and beverage revenues, an 11.1% surge in mall revenues and an 8.3% improvement in convention, retail and other revenues. Adjusted property EBITDA increased 10.6% year over year to $37.7 million in the quarter.
Moreover, Table Games Drop were up 0.6% in the quarter.
Zacks Rank & Stocks to Consider
Las Vegas Sands presently has a Zacks Rank #3 (Hold). Better-ranked stocks in the gaming industry include Isle of Capri Casinos, Inc. , Monarch Casino & Resort Inc. (MCRI - Free Report) and Melco Crown Entertainment Limited . While Isle of Capri Casinos and Monarch Casino & Resort sport a Zacks Rank #1 (Strong Buy), Melco Crown Entertainment carries a Zacks Rank #2 (Buy).
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Las Vegas Sands Corp. (LVS - Free Report) recently reported second-quarter results, with both earnings and revenues missing the Zacks Consensus Estimate.
However, the company’s shares rallied nearly 5% in afterhours trading on Jul 25, after the company stated that though the operating environment in Macau continued to be a drag during the quarter, it is showing signs of stabilization, primarily in the mass market. This mirrors investors’ hope that a turnaround in Macau might be underway.
In fact, the company informed that its Macau properties witnessed a year-over-year increase in both mass gaming volumes and revenues in June, representing the first month of year-over-year growth in mass gaming since Sep 2014.
Meanwhile, adjusted earnings per share (EPS) of 52 cents missed the Zacks Consensus Estimate of 56 cents by 7.1% and declined 13.3% year over year due to lower revenues and profits.
Quarterly net revenues of $2.65 billion missed the Zacks Consensus Estimate of $2.74 billion by 3.2% and declined 9.3% year over year due to weak performance in Macau.
On a consolidated basis, adjusted property EBITDA decreased 6% year over year to $955.1 million during the quarter owing to lower revenues.
Property Details: Asian Operations
The company's Asian business includes the following resorts:
Marina Bay Sands, Singapore
Net revenues declined 0.4% year over year to $710.1 million, owing to a 1.6% decrease in casino revenues and a 3.3% drop in convention retail and other revenues. However, the decrease was partially offset by an 11.6% increase in food and beverage revenues. Adjusted property EBITDA in the quarter was $357 million, down 1.7%.
Meanwhile, Non-Rolling Chip Drop fell 0.7, while Rolling Chip volume decreased 29.1%.
Four Seasons Hotel Macau and Plaza Casino
Net revenues plunged 38.8% to $125 million due to a 46.7% decline in casino revenues, a 25.7% drop in room revenues, a 14.1% fall in food and beverage revenues, and a 25% decrease in convention retail and other revenues. Adjusted property EBITDA decreased 41.2% to $43.7 million.
Notably, Non-Rolling Chip Drop fell 16.8% and Rolling Chip volume decreased a massive 55%.
Sands Macau
Revenues declined 23.4% year over year to $185 million owing to a 23.6% decline in casino revenues, a 10.5% fall in room revenues and a 21.5% drop in food and beverage revenues. Adjusted property EBITDA fell 26.7% to $48.6 million.
Non-Rolling Chip Drop and Rolling Chip volume decreased 15.5% and 16.1%, respectively, during the quarter.
The Venetian Macau
Net revenues decreased 9.9% year over year to $666.1 million due to a 10.3% decline in casino revenues, 11.8% drop in room revenues and 19% plunge in convention, retail and other revenues, partially offset by an increase of 6.1% and 5.8%, respectively, in food and beverage and mall revenues. Adjusted property EBITDA was down 4.2% to $244.4 million in the reported quarter.
Meanwhile, Non-Rolling Chip Drop declined 1.2% and Rolling Chip volume decreased 10%.
Sands Cotai Central
Net revenues fell 14.7% year over year to $472.7 million owing to a 16.5% decline in casino revenues, offset to an extent by 1.1% increase in room revenues, 3.8% rise in food and beverage revenues, 6.8% improvement in mall revenues and 9.3% surge in convention retail and other revenues. Adjusted property EBITDA was $144.1 million, down 12.2%.
Interestingly, Non-Rolling Chip Drop inched up 3.2% while Rolling Chip volume declined 36.1%.
Domestic Operations
Las Vegas Operations
Net revenues from Las Vegas operations, which comprise The Venetian Las Vegas and The Palazzo, increased 3% year over year to $356.5 million driven by an 8.8% increase in room revenues, a 5.8% rise in food and beverage revenues and a 1.7% increase in convention retail and other revenues. However, the increase was partially offset by a 5.2% decline in casino revenues. Adjusted property EBITDA rose 33.8% year over year to $72.5 million.
However, Table Games Drop fell 19.7% in the quarter.
Sands Bethlehem, PA
Net revenues at Sands Bethlehem were $146.5 million in the quarter, up 6.5% year over year, attributable to a 6% increase in casino revenues, a 13% rise in food and beverage revenues, an 11.1% surge in mall revenues and an 8.3% improvement in convention, retail and other revenues. Adjusted property EBITDA increased 10.6% year over year to $37.7 million in the quarter.
Moreover, Table Games Drop were up 0.6% in the quarter.
Zacks Rank & Stocks to Consider
Las Vegas Sands presently has a Zacks Rank #3 (Hold). Better-ranked stocks in the gaming industry include Isle of Capri Casinos, Inc. , Monarch Casino & Resort Inc. (MCRI - Free Report) and Melco Crown Entertainment Limited . While Isle of Capri Casinos and Monarch Casino & Resort sport a Zacks Rank #1 (Strong Buy), Melco Crown Entertainment carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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