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Las Vegas Sands (LVS) Q4 Earnings Miss Estimates, Fall Y/Y

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Las Vegas Sands Corp. (LVS - Free Report) reported dismal fourth-quarter 2020 results, with earnings and revenues missing the Zacks Consensus Estimate. Also, the top and the bottom line declined on a year-over-year basis. Notably, both the metrics missed the consensus mark for the third straight quarter.

Despite the dismal performance, management stated that recovery from the coronavirus pandemic continues in all markets. Also, its strong balance sheet is likely to support its capital expenditure programs in Macao and Singapore as well as provide other growth opportunities in new markets.

Earnings & Revenue Discussion

During fourth-quarter 2020, the company recorded adjusted loss per share of 37 cents, wider than the Zacks Consensus Estimate of a loss of 31 cents. In the prior-year quarter, the company had reported adjusted earnings of 88 cents per share. During the quarter, interest expenses (net of amounts capitalized) came in at $150 million compared with $134 million in the prior-year quarter.

Quarterly revenues of $1,146 million missed the consensus mark of $1,226 million. The figure also declined 67.3% from the year-ago quarter’s figure. Notably, the top line was impacted by lower occupancy rates and Revpar across all regions.

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

 

Asian Operations

Las Vegas Sands’ Asia business includes the following resorts:

The Venetian Macao

During the fourth quarter, net revenues plunged 64% year over year to $327 million. Casino and rooms revenues amounted to $243 million and $21 million, down 67.5% and 61.1%, respectively. Food and beverage as well as convention, retail and other revenues declined 64.7% and 66.7% year over year to $6 million each, respectively. Mall revenues contracted 28.2% year over year to $51 million.

Adjusted property EBITDA during the fourth quarter came in at $73 million compared with $368 million reported in the prior-year quarter.

Non-rolling chip drop declined 58% and rolling chip volumes fell 79.4% on a year-over-year basis.

During the quarter, the segment’s hotel Revpar declined 62.4% year over year to $82 million, while occupancy rates came in at 49.3% compared with 97.2% in the prior-year quarter.

The Londoner Macao

During the fourth quarter, net revenues nosedived 81.2% year over year to $95 million due to declines of 83.4%, 83.3% and 78.3% in casino, rooms and food and beverage revenues, respectively. Moreover, mall as well as convention, retail and other revenues declined 35% and 80% year over year, respectively.

Adjusted property EBITDA plunged 118.9% year over year to ($34) million.

Both non-rolling chip drop and rolling chip volume fell 82.4% and 100% year over year, respectively.

During the quarter, the segment’s hotel Revpar declined 79.3% year over year to $34 million, while occupancy rates came in at 22.2% compared with 98.5% in the prior-year quarter.

The Parisian Macao

During the fourth quarter, revenues amounted to $101 million, down 74.8% year over year. The downside was caused by a slump of 79.3% in casino revenues. It was further aggravated by declines of 54.5%, 70.6%, 15.4% and 75% in rooms, food and beverage, mall, convention and other retail revenues, respectively.

Adjusted property EBITDA plunged 105.7% year over year to ($7) million.

Both non-rolling chip drop and rolling chip volumes fell 64.1% and 87.2% year over year, respectively.

During the quarter, the segment’s hotel Revpar declined 57.4% year over year to $66 million. Occupancy rates came in at 50% compared with 97.6% in the prior-year quarter.

The Plaza Macao and Four Seasons Hotel Macao

During the fourth quarter, net revenues tanked 53.7% to $114 million owing to declines of 65.7%, 37.5%, 29.8%, in casino, food and beverage and mall revenues, respectively.

Adjusted property EBITDA in the reported quarter totaled $38 million, thereby plummeting 62.7% on a year-over-year basis.

Both non-rolling chip drop and rolling chip volume declined 36.7% and 64.7% year over year, respectively.

During the quarter, the segment’s hotel Revpar declined 39% year over year to $189 million, while occupancy rates came in at 42% compared with 92.9% in the prior-year quarter.

Sands Macao

During the fourth quarter, revenues were down 78.7% year over year to $32 million owing to declines of 80.3%, 40%, 71.4% in casino, rooms, food and beverage revenues, respectively.

Adjusted property EBITDA in the reported quarter totaled ($18) million, declining 145% on a year-over-year basis.

Both non-rolling chip drop and rolling chip volume fell 79.2% and 51.8% year over year, respectively.

During the quarter, the segment’s hotel Revpar declined 44.9% year over year to $98 million, while occupancy rates came in at 69.6% compared with 100% in the prior-year quarter.

Marina Bay Sands, Singapore

During the fourth quarter, net revenues plunged 59.6% year over year to $345 million owing to declines of 62%, 64%, 53.6%, 27.8% and 67.9% in casino, rooms, food and beverage, mall, and convention, retail and other revenues, respectively.

Adjusted property EBITDA in the reported quarter totaled 144 million, reflecting a slump of 68.5% on a year-over-year basis.

Both non-rolling chip drop and rolling chip volumes declined 54.8% and 84.1% year over year, respectively.

During the quarter, the segment’s hotel Revpar declined 63.9% year over year to $158 million, while occupancy rates came in at 69% compared with 97.3% in the prior-year quarter.

Domestic Operations

Las Vegas

During the fourth quarter, net revenues from Las Vegas operations dropped 68.4% year over year to $150 million owing to declines of 55.2% and 77.2% in casino as well as food and beverage revenues, respectively. Rooms revenues also slumped 73.2% year over year. Moreover, convention, retail and other revenues declined 67.6% year over year.

Adjusted property EBITDA in the reported quarter totaled ($50) million, down 141.7% on a year-over-year basis.

Table games drop were down 46.5%, while slot handle fell 32.3% on a year-over-year basis.

During the reported quarter, Revpar declined 66.1% year over year to $81 million, while occupancy rates came in at 43.9% compared with 94.5% in the prior year quarter.

Operating Results

On a consolidated basis, adjusted property EBITDA totaled $141 million in the fourth quarter 2020 compared with $1.39 billion reported in the prior-year quarter. Las Vegas operating properties, Sands Macao, The Plaza Macao and Four Seasons Hotel Macao, Venetian Macao, The Londoner Macao, The Parisian Macao and Marina Bay Sands, all witnessed declines in adjusted EBITDA.

Balance Sheet

As of Dec 31, 2020, unrestricted cash balances amounted to $2.12 billion. Total debt outstanding (excluding finance leases) was $13.98 billion.

In the reported quarter, capital expenditures totaled $252 million, thanks to construction, development and maintenance activities of $201 million in Macao, $24 million in Las Vegas and $27 million at Marina Bay Sands.

2020 Highlights

Net revenues in 2020 came in at $3,612 million compared with $13,739 million in 2019.

Operating loss in 2020 came in at $1.69 billion against an operating income of $3.70 billion in 2019.

In 2020, diluted loss per share came in at ($2.21) per share against earnings of $3.50 in the previous year.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the Zacks Consumer Discretionary sector includes Red Rock Resorts, Inc. (RRR - Free Report) , Vista Outdoor Inc. (VSTO - Free Report) and YETI Holdings, Inc. (YETI - Free Report) . Red Rock and Vista Outdoor sport a Zacks Rank #1 (Strong Buy), while YETI Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

2021 earnings for Red Rock and Vista Outdoor are expected to surge 172.9% and 1,041.7%, respectively.

YETI Holdings has a three-five-year earnings per share growth rate of 18.3%.

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