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.
Why Is Las Vegas Sands (LVS) Down 5.2% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have lost about 5.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Las Vegas Sands due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Las Vegas Sands Q2 Earnings & Revenues Beat Estimates
Las Vegas Sands reported second-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The company benefited from recovery in travel and tourism spending in both Macao and Singapore.
Q2 Earnings & Revenues
During second-quarter 2023, LVS reported an adjusted earnings per share (EPS) of 46 cents, beating the Zacks Consensus Estimate of 45 cents. In the prior-year quarter, it incurred an adjusted loss of 34 cents. Interest expenses (net of amounts capitalized) amounted to $210 million compared with $162 million in the prior-year quarter.
Quarterly revenues of $2,542 million surpassed the consensus mark of $2,365 million by 7.5%. The figure increased 143.3% from $1,045 million reported in the year-ago quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts (all figures are compared with prior-year quarter’s reported levels):
The Venetian Macao
Net revenues from The Venetian Macao were $653 million compared with $150 million. This was driven by a rise in casino, rooms and mall revenues. Our estimate was $579.1 million.
Quarterly revenues from casinos, rooms and malls were $523 million, $48 million and $53 million compared with $91 million, $12 million and $41 million, respectively. Convention, retail and other revenues were $12 million compared with $3 million. Food and beverage revenues came in at $17 million compared with $3 million.
Adjusted property EBITDA totaled $252 million against ($21) million. Our estimate for the metric was $161.5 million. Non-rolling chip drop and rolling chip were $2,174 million and $1,093 million compared with $332 million and $264 million, respectively.
The segment’s hotel RevPAR was $198 million compared with $50 million. Occupancy rates came in at 94.6% compared with 36.8%.
The Londoner Macao
Net revenues from The Londoner Macao amounted to $402 million compared with $79 million. The upside was backed by an increase in casino, rooms, and food and beverage revenues. Our estimate was $270.7 million.
Revenues from casinos, rooms, and food and beverage totaled $282 million, $80 million and $20 million compared with $42 million, $14 million and $7 million, respectively. Quarterly revenues from convention, retail and other totaled $5 million compared with $4 million.
Adjusted property EBITDA totaled $103 million against ($54) million.
Non-rolling chip drop was $1,354 million compared with $175 million. Rolling chip drop was $1,999 million compared with $222 million.
The segment’s hotel RevPAR was $161 million compared with $34 million. Occupancy rates came in at 81.8% compared with 24.9%.
The Parisian Macao
Net revenues from The Parisian Macao were $239 million compared with $42 million. The uptick was primarily due to an improvement in casino, rooms, and food and beverage revenues. Our estimate was $238.1 million.
Revenues from casinos, rooms, and food and beverage totaled $183 million, $35 million and $11 million compared with $24 million, $7 million and $3 million, respectively.
Non-rolling chip drop was $776 million compared with $91 million. Rolling chip drop amounted to $612 million compared with $48 million.
The segment’s hotel RevPAR was $153 million compared with $37 million. Occupancy rates came in at 98% compared with 37%.
The Plaza Macao and Four Seasons Macao
Net revenues from The Plaza Macao and Four Seasons Macao were $223 million compared with $79 million. The uptrend can be attributed to a rise in casino, rooms and mall revenues. Our estimate was $174.2 million.
Casino, rooms and mall revenues came in at $150 million, $25 million and $39 million compared with $38 million, $6 million and $33 million, respectively.
Adjusted property EBITDA totaled $91 million compared with $17 million. Non-rolling chip drop and rolling chip drop were $567 million and $1,178 million compared with $101 million and $489 million.
The segment’s hotel RevPAR was $407 million compared with $96 million. Occupancy rates came in at 84.8% compared with 23.3%.
Sands Macao
Net revenues from Sands Macao were $84 million compared with $17 million. This was mainly resulted from a rise in casino revenues. Casino revenues totaled $76 million compared with $14 million.
Adjusted property EBITDA totaled $15 million against ($22) million.
Non-rolling chip drop and rolling chip drop were $406 million and $36 million compared with $57 million and $66 million, respectively.
The segment’s hotel RevPAR was $160 million compared with $72 million. Occupancy rates came in at 94.6% compared with 56.6%.
Marina Bay Sands, Singapore
Net revenues from Marina Bay Sands totaled $925 million, up 36.2%. The upside was primarily driven by an increase in casino, rooms, mall, and food and beverage revenues.
Revenues from casinos, and food and beverage totaled $649 million and $84 million, up 29.8% and 75%. Rooms, mall, and convention, retail and other generated revenues of $104 million, $57 million and $31 million compared with $56 million, $48 million and $20 million, respectively.
Adjusted property EBITDA totaled $432 million, up 35.4%.
Non-rolling chip drop and rolling chip drop were $1,870 million and $6,013 million compared with $1,137 million and $5,394 million, respectively.
The segment’s hotel RevPAR was $579 million compared with $330 million. Occupancy rates were 97% compared with 93.9%.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $973 /million in second-quarter 2023 compared with $209 million in the year-ago quarter.
Balance Sheet
As of Jun 30, 2023, unrestricted cash balances amounted to $5.77 billion compared with $6.53 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $14.7 billion compared with $15.97 billion in the earlier quarter.
In the reported quarter, capital expenditures totaled $196 million, thanks to construction, development and maintenance activities of $42 million in Macao and $144 million at Marina Bay Sands.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Las Vegas Sands has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Las Vegas Sands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Las Vegas Sands (LVS) Down 5.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have lost about 5.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Las Vegas Sands due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Las Vegas Sands Q2 Earnings & Revenues Beat Estimates
Las Vegas Sands reported second-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The company benefited from recovery in travel and tourism spending in both Macao and Singapore.
Q2 Earnings & Revenues
During second-quarter 2023, LVS reported an adjusted earnings per share (EPS) of 46 cents, beating the Zacks Consensus Estimate of 45 cents. In the prior-year quarter, it incurred an adjusted loss of 34 cents. Interest expenses (net of amounts capitalized) amounted to $210 million compared with $162 million in the prior-year quarter.
Quarterly revenues of $2,542 million surpassed the consensus mark of $2,365 million by 7.5%. The figure increased 143.3% from $1,045 million reported in the year-ago quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts (all figures are compared with prior-year quarter’s reported levels):
The Venetian Macao
Net revenues from The Venetian Macao were $653 million compared with $150 million. This was driven by a rise in casino, rooms and mall revenues. Our estimate was $579.1 million.
Quarterly revenues from casinos, rooms and malls were $523 million, $48 million and $53 million compared with $91 million, $12 million and $41 million, respectively. Convention, retail and other revenues were $12 million compared with $3 million. Food and beverage revenues came in at $17 million compared with $3 million.
Adjusted property EBITDA totaled $252 million against ($21) million. Our estimate for the metric was $161.5 million. Non-rolling chip drop and rolling chip were $2,174 million and $1,093 million compared with $332 million and $264 million, respectively.
The segment’s hotel RevPAR was $198 million compared with $50 million. Occupancy rates came in at 94.6% compared with 36.8%.
The Londoner Macao
Net revenues from The Londoner Macao amounted to $402 million compared with $79 million. The upside was backed by an increase in casino, rooms, and food and beverage revenues. Our estimate was $270.7 million.
Revenues from casinos, rooms, and food and beverage totaled $282 million, $80 million and $20 million compared with $42 million, $14 million and $7 million, respectively. Quarterly revenues from convention, retail and other totaled $5 million compared with $4 million.
Adjusted property EBITDA totaled $103 million against ($54) million.
Non-rolling chip drop was $1,354 million compared with $175 million. Rolling chip drop was $1,999 million compared with $222 million.
The segment’s hotel RevPAR was $161 million compared with $34 million. Occupancy rates came in at 81.8% compared with 24.9%.
The Parisian Macao
Net revenues from The Parisian Macao were $239 million compared with $42 million. The uptick was primarily due to an improvement in casino, rooms, and food and beverage revenues. Our estimate was $238.1 million.
Revenues from casinos, rooms, and food and beverage totaled $183 million, $35 million and $11 million compared with $24 million, $7 million and $3 million, respectively.
Non-rolling chip drop was $776 million compared with $91 million. Rolling chip drop amounted to $612 million compared with $48 million.
The segment’s hotel RevPAR was $153 million compared with $37 million. Occupancy rates came in at 98% compared with 37%.
The Plaza Macao and Four Seasons Macao
Net revenues from The Plaza Macao and Four Seasons Macao were $223 million compared with $79 million. The uptrend can be attributed to a rise in casino, rooms and mall revenues. Our estimate was $174.2 million.
Casino, rooms and mall revenues came in at $150 million, $25 million and $39 million compared with $38 million, $6 million and $33 million, respectively.
Adjusted property EBITDA totaled $91 million compared with $17 million.
Non-rolling chip drop and rolling chip drop were $567 million and $1,178 million compared with $101 million and $489 million.
The segment’s hotel RevPAR was $407 million compared with $96 million. Occupancy rates came in at 84.8% compared with 23.3%.
Sands Macao
Net revenues from Sands Macao were $84 million compared with $17 million. This was mainly resulted from a rise in casino revenues. Casino revenues totaled $76 million compared with $14 million.
Adjusted property EBITDA totaled $15 million against ($22) million.
Non-rolling chip drop and rolling chip drop were $406 million and $36 million compared with $57 million and $66 million, respectively.
The segment’s hotel RevPAR was $160 million compared with $72 million. Occupancy rates came in at 94.6% compared with 56.6%.
Marina Bay Sands, Singapore
Net revenues from Marina Bay Sands totaled $925 million, up 36.2%. The upside was primarily driven by an increase in casino, rooms, mall, and food and beverage revenues.
Revenues from casinos, and food and beverage totaled $649 million and $84 million, up 29.8% and 75%. Rooms, mall, and convention, retail and other generated revenues of $104 million, $57 million and $31 million compared with $56 million, $48 million and $20 million, respectively.
Adjusted property EBITDA totaled $432 million, up 35.4%.
Non-rolling chip drop and rolling chip drop were $1,870 million and $6,013 million compared with $1,137 million and $5,394 million, respectively.
The segment’s hotel RevPAR was $579 million compared with $330 million. Occupancy rates were 97% compared with 93.9%.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $973 /million in second-quarter 2023 compared with $209 million in the year-ago quarter.
Balance Sheet
As of Jun 30, 2023, unrestricted cash balances amounted to $5.77 billion compared with $6.53 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $14.7 billion compared with $15.97 billion in the earlier quarter.
In the reported quarter, capital expenditures totaled $196 million, thanks to construction, development and maintenance activities of $42 million in Macao and $144 million at Marina Bay Sands.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Las Vegas Sands has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Las Vegas Sands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.