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Factors Setting the Tone for Las Vegas Sands (LVS) Q2 Earnings

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Las Vegas Sands Corp. (LVS - Free Report) is scheduled to report second-quarter 2022 results on Jul 20, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 66.7%.

How Are Estimates Placed?

The Zacks Consensus Estimate for the second-quarter bottom line is pegged at a loss of 23 cents per share, indicating an improvement of 11.5% from a loss of 26 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $954.6 million. The metric suggests a deterioration of 18.6% from the year-ago quarter’s figure.

Las Vegas Sands Corp. Price and EPS Surprise

 

Las Vegas Sands Corp. Price and EPS Surprise

Las Vegas Sands Corp. price-eps-surprise | Las Vegas Sands Corp. Quote

 

Let's look at how things have shaped up in the quarter.

Factors at Play

Las Vegas Sands’ second-quarter performance is likely to have benefited from its extensive non-gaming revenue opportunities, planned investment in new projects (in the United States and Asia) and digital efforts. This and increased visitation owing to the establishment of travel corridors (in Singapore) and resilient customer demand and spending in gaming and retail (in Macao) are likely to have made way for recovery in the to-be-reported quarter.

Strong contributions from Marine Bay Sands and the Four Seasons Hotel Macao segment might have aided the company’s second-quarter top line. The Zacks Consensus Estimate for net revenues at Marine Bay Sands and Four Seasons Hotel Macao is pegged at $484 million and $126 million, suggesting growth of 48% and 0.8%, respectively, from the prior-year quarter’s figures.

However, tighter travel restrictions, quarantine policies and suspension of ferry operations (between Macao and Hong Kong) are likely to have affected the company’s operations in the second quarter. Although sequential improvements in terms of visitation are likely, it is still expected to remain below pre-pandemic levels. The Zacks Consensus Estimate for net revenues at Sand Cotai Central and Parisian Macao is pegged at $183 million and $79 million, suggesting a 3.2% and 21.8% decline, respectively, from the prior-year quarter’s figures. Net revenues at Venetian Macao are pegged at $317 million, indicating a decline of 18.9% from the prior-year quarter’s levels.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Las Vegas Sands this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. But that's not the case here.

Earnings ESP: Las Vegas Sands has an Earnings ESP of +0.44%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #4 (Sell).

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:

MGM Resorts International (MGM - Free Report) has an Earnings ESP of +60.20% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of MGM Resorts have declined 25% in the past year. MGM’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 212.5%.

Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +10.12% and a Zacks Rank #3.

Shares of Marriott have increased 4.3% in the past year. MAR’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 36.2%.

Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +13.39% and a Zacks Rank #3.

Shares of Hilton have declined 5.4% in the past year. HLT’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 20.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.