We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for VICI Properties (VICI) in Q2 Earnings?
Read MoreHide Full Article
VICI Properties Inc. (VICI - Free Report) is slated to report second-quarter 2023 results on Jul 26 after the closing bell. Its quarterly results are expected to exhibit 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, reported adjusted FFO per share of 53 cents, beating the Zacks Consensus Estimate by a whisker.
Over the preceding four quarters, the company’s adjusted FFO per share surpassed the Zacks Consensus Estimate on two occasions and met the same in the other two, the average beat being 0.98%. This is depicted in the graph below:
VICI Properties owns one of the largest high-quality portfolios of market-leading gaming, hospitality and entertainment destinations. It enjoys 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.
In the wake of the pandemic, VICI Properties is likely to have capitalized on the rebound in demand for its gaming facilities in some high-barriers-to-entry markets during the second quarter. Also, the recovery in the hospitality industry and entertainment destinations is expected to have driven occupancy at the company’s properties, aiding its quarterly earnings.
The company has a geographically diverse portfolio with multiple revenue streams. Its focus on building healthy operator relationships and long-term leases with CPI-based rent escalators are expected to have led to stable cash flows during the quarter, boosting its top-line growth.
The Zacks Consensus Estimate for second-quarter 2023 revenues is pegged at $885.5 million, suggesting growth of 33.6% from the prior-year quarter’s reported figure.
Income from sales-type leases is currently pegged at $494.5 million, indicating an increase of 3.3% from the previous quarter’s $478.4 million and 31.7% from the year-ago quarter’s $375.2 million.
Income from lease financing receivables and loans stands at $327.5 million, down sequentially from $371.1 million but up from the year-ago period’s $261.7 million.
Revenues from golf operations are estimated at $10.19 million, up from the prior quarter’s $9.85 million and marginally above the year-ago quarter’s $10.17 million.
Further, continuing with its accretive asset-base expansion, in May 2023, VICI entered into definitive agreements to acquire four properties in Alberta, Canada, in a sale-leaseback transaction with Century Casinos, Inc. for $164.7 million or C$221.7 million.
The company’s investment-grade balance sheet and strategic financing activities are likely to have given it an edge.
The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at 53 cents over the past month. However, the figure suggests 10.4% growth year over year.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an FFO beat for VICI Properties this time. The right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — increases the odds of a beat. However, that is not the case here.
Earnings ESP: VICI 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.
Here are some stocks that are worth considering from the broader REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
EastGroup Properties (EGP - Free Report) is scheduled to report quarterly figures on Jul 25. EGP has an Earnings ESP of +1.22% and a Zacks Rank #2 (Buy) currently.
American Tower (AMT - Free Report) is slated to release report quarterly numbers on Jul 27. AMT has an Earnings ESP of +1.64% and a Zacks Rank #3 at present.
W.P. Carey (WPC - Free Report) is slated to report quarterly numbers on Jul 28. WPC has an Earnings ESP of +1.13% and carries a Zacks Rank #2 presently.
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
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
What's in Store for VICI Properties (VICI) in Q2 Earnings?
VICI Properties Inc. (VICI - Free Report) is slated to report second-quarter 2023 results on Jul 26 after the closing bell. Its quarterly results are expected to exhibit 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, reported adjusted FFO per share of 53 cents, beating the Zacks Consensus Estimate by a whisker.
Over the preceding four quarters, the company’s adjusted FFO per share surpassed the Zacks Consensus Estimate on two occasions and met the same in the other two, the average beat being 0.98%. This is depicted in the graph below:
VICI Properties Inc. Price and EPS Surprise
VICI Properties Inc. price-eps-surprise | VICI Properties Inc. Quote
Factors at Play
VICI Properties owns one of the largest high-quality portfolios of market-leading gaming, hospitality and entertainment destinations. It enjoys 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.
In the wake of the pandemic, VICI Properties is likely to have capitalized on the rebound in demand for its gaming facilities in some high-barriers-to-entry markets during the second quarter. Also, the recovery in the hospitality industry and entertainment destinations is expected to have driven occupancy at the company’s properties, aiding its quarterly earnings.
The company has a geographically diverse portfolio with multiple revenue streams. Its focus on building healthy operator relationships and long-term leases with CPI-based rent escalators are expected to have led to stable cash flows during the quarter, boosting its top-line growth.
The Zacks Consensus Estimate for second-quarter 2023 revenues is pegged at $885.5 million, suggesting growth of 33.6% from the prior-year quarter’s reported figure.
Income from sales-type leases is currently pegged at $494.5 million, indicating an increase of 3.3% from the previous quarter’s $478.4 million and 31.7% from the year-ago quarter’s $375.2 million.
Income from lease financing receivables and loans stands at $327.5 million, down sequentially from $371.1 million but up from the year-ago period’s $261.7 million.
Revenues from golf operations are estimated at $10.19 million, up from the prior quarter’s $9.85 million and marginally above the year-ago quarter’s $10.17 million.
Further, continuing with its accretive asset-base expansion, in May 2023, VICI entered into definitive agreements to acquire four properties in Alberta, Canada, in a sale-leaseback transaction with Century Casinos, Inc. for $164.7 million or C$221.7 million.
The company’s investment-grade balance sheet and strategic financing activities are likely to have given it an edge.
The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at 53 cents over the past month. However, the figure suggests 10.4% growth year over year.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an FFO beat for VICI Properties this time. The right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — increases the odds of a beat. However, that is not the case here.
Earnings ESP: VICI 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.
Zacks Rank: VICI currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Here are some stocks that are worth considering from the broader REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
EastGroup Properties (EGP - Free Report) is scheduled to report quarterly figures on Jul 25. EGP has an Earnings ESP of +1.22% and a Zacks Rank #2 (Buy) currently.
American Tower (AMT - Free Report) is slated to release report quarterly numbers on Jul 27. AMT has an Earnings ESP of +1.64% and a Zacks Rank #3 at present.
W.P. Carey (WPC - Free Report) is slated to report quarterly numbers on Jul 28. WPC has an Earnings ESP of +1.13% and carries a Zacks Rank #2 presently.
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.