Las Vegas Sands Corp. (LVS - Free Report) is likely to report third-quarter 2016 numbers on Oct 19, after market close. We expect the casino operator to beat expectations.
Last quarter, Las Vegas Sands posted a 7.14% negative earnings surprise. In fact, the company’s earnings lagged the Zacks Consensus Estimate in three of the last four quarters, with an average miss of 7.93%.
Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Las Vegas Sands is likely to beat on earnings because it has the perfect combination of the two key ingredients.
Zacks ESP: Earnings ESP for Las Vegas Sands stands at +1.70% because the Most Accurate estimate is 60 cents while the Zacks Consensus Estimate is pegged lower at 59 cents. A favorable Earnings ESP serves as a meaningful indicator of a likely positive earnings surprise.
Zacks Rank: Las Vegas Sands currently carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Las Vegas Sands’ Zacks Rank #3 and +1.70% Earnings ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-than-Expected Earnings?
Las Vegas Sands has been reporting lower-than-expected revenues over the past eight quarters due to sluggish performance in Macau, its key operating region.
However, per the Macau Gaming Inspection and Coordination Bureau, though gross gaming revenues (GGR) for the month of July fell 4.5%, it rose in August and September by 1.1% and 7.4%, respectively, on a year-over-year basis, indicating that the Macau market might be on the recovery path. Moreover, the opening of Las Vegas Sands’ subsidiary Sands China Ltd.’s The Parisian on Sep 13, is likely to have attracted tourists and leisure gamblers.
We thus expect the company to mark a turnaround in the Macau region in the to-be-reported quarter.
Meanwhile, comparatively better performance at the non-gaming segments and growth in mass markets are expected to boost third-quarter margins. Also, the company’s focus on renovation and promotion of its Las Vegas properties should lead to high occupancy rates and continue driving segmental performance.
Stocks to Consider
Las Vegas Sands is not the only company looking up this earnings season. Here are some other companies to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
Live Nation Entertainment, Inc. (LYV - Free Report) has an earnings ESP of +7.84% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mattel, Inc. (MAT - Free Report) has an earnings ESP of +1.43% and a Zacks Rank #1.
Boyd Gaming Corporation (BYD - Free Report) has an earnings ESP of +20% and a Zacks Rank #2.
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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.
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Las Vegas Sands Corp. (LVS - Free Report) is likely to report third-quarter 2016 numbers on Oct 19, after market close. We expect the casino operator to beat expectations.
Last quarter, Las Vegas Sands posted a 7.14% negative earnings surprise. In fact, the company’s earnings lagged the Zacks Consensus Estimate in three of the last four quarters, with an average miss of 7.93%.
Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Las Vegas Sands is likely to beat on earnings because it has the perfect combination of the two key ingredients.
Zacks ESP: Earnings ESP for Las Vegas Sands stands at +1.70% because the Most Accurate estimate is 60 cents while the Zacks Consensus Estimate is pegged lower at 59 cents. A favorable Earnings ESP serves as a meaningful indicator of a likely positive earnings surprise.
Zacks Rank: Las Vegas Sands currently carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Las Vegas Sands’ Zacks Rank #3 and +1.70% Earnings ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-than-Expected Earnings?
Las Vegas Sands has been reporting lower-than-expected revenues over the past eight quarters due to sluggish performance in Macau, its key operating region.
However, per the Macau Gaming Inspection and Coordination Bureau, though gross gaming revenues (GGR) for the month of July fell 4.5%, it rose in August and September by 1.1% and 7.4%, respectively, on a year-over-year basis, indicating that the Macau market might be on the recovery path. Moreover, the opening of Las Vegas Sands’ subsidiary Sands China Ltd.’s The Parisian on Sep 13, is likely to have attracted tourists and leisure gamblers.
We thus expect the company to mark a turnaround in the Macau region in the to-be-reported quarter.
Meanwhile, comparatively better performance at the non-gaming segments and growth in mass markets are expected to boost third-quarter margins. Also, the company’s focus on renovation and promotion of its Las Vegas properties should lead to high occupancy rates and continue driving segmental performance.
Stocks to Consider
Las Vegas Sands is not the only company looking up this earnings season. Here are some other companies to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
Live Nation Entertainment, Inc. (LYV - Free Report) has an earnings ESP of +7.84% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mattel, Inc. (MAT - Free Report) has an earnings ESP of +1.43% and a Zacks Rank #1.
Boyd Gaming Corporation (BYD - Free Report) has an earnings ESP of +20% and a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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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