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Here's How VICI Properties (VICI) Is Placed Before Q4 Earnings

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VICI Properties Inc. (VICI - Free Report) is slated to report fourth-quarter and full-year 2022 results on Feb 23 after market close. The company’s quarterly results are likely to display growth in revenues and funds from operations (FFO) per share.

In the last reported quarter, this New York-based experiential REIT, which owns the portfolios of market-leading gaming, hospitality and entertainment destinations, came up with an in-line performance in terms of adjusted FFO per share.

In the last four quarters, the company exceeded the Zacks Consensus Estimate on one occasion and met the same on the other three. It has a trailing four-quarter surprise of 0.58%, on average. This is depicted in the graph below:

VICI Properties Inc. Price and EPS Surprise

VICI Properties Inc. Price and EPS Surprise

VICI Properties Inc. price-eps-surprise | VICI Properties Inc. Quote

Let’s see how things have shaped up before this announcement.

Factors to Note

VICI Properties’ national, geographically diverse portfolio comprising market-leading gaming, hospitality and entertainment destinations is poised to benefit from the rising demand with the waning of pandemic concerns. VICI enjoys the ownership of three of the most iconic entertainment facilities on the Las Vegas Strip, namely Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.

Over the past two years, the company has made concerted efforts to grow its portfolio and team up with the best-in-class tenants. Also, it has made strategic financing activities. Such efforts are likely to have aided VICI’s performance in the quarter under review.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $765.8 million. This suggests a year-over-year surge of 99.9%.

Income from sales-type leases is currently pegged at $439.93 million, indicating an increase from the prior quarter’s $376.05 million and the year-ago quarter’s $294.64 million.

Income from lease financing receivables and loans stands at $296.38 million, down sequentially from $350.95 million but up from the year-ago period’s $72.66 million.

Revenues from golf operations are estimated at $9.76 million, up from the prior quarter’s $6.69 million and higher than the year-ago quarter’s $8.94 million.

Before the quarterly earnings release, there is a lack of any solid catalyst to become optimistic about the stock. The Zacks Consensus Estimate for the October-December quarter’s FFO per share has remained unchanged at 50 cents over the past month. However, the figure suggests 13.6% growth year over year.

For the full-year 2022, VICI Properties expected adjusted FFO per share in the range of $1.91-$1.92.

For the full year, the Zacks Consensus Estimate for the adjusted FFO per share is pegged at $1.92. The figure indicates a 5.5% increase year over year on 72.0% year-over-year growth in revenues to $2.60 billion.

Here Is What Our Quantitative Model Predicts:

Our proven model does not conclusively predict a surprise in terms of FFO per share for VICI Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.

VICI Properties currently carries a Zacks Rank #2 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks from the broader REIT sector — Extra Space Storage Inc. (EXR - Free Report) and Park Hotels & Resorts Inc. (PK - Free Report) — that you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.

Extra Space Storage, slated to report fourth-quarter earnings on Feb 22, currently has an Earnings ESP of +4.01% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Park Hotels & Resorts, scheduled to report quarterly numbers on Feb 22, currently has an Earnings ESP of +3.66% and carries a Zacks Rank of 3.

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

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

See More Zacks Research for These Tickers

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Extra Space Storage Inc (EXR) - free report >>

Park Hotels & Resorts Inc. (PK) - free report >>

VICI Properties Inc. (VICI) - free report >>

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