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Las Vegas Sands (LVS) Up 7.1% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have added about 7.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Las Vegas Sands due for a pullback? 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 drivers.
Las Vegas Sands Q3 Earnings & Revenues Top Estimates
LVS reported third-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 notably benefited from the recovery in travel and tourism spending in both Macao and Singapore. In Macao, the company witnessed improvement in both gaming and non-gaming segments. Furthermore, Singapore’s Marina Bay Sands portrayed performance growth. Its new suite product and elevated service offerings position the company well to deliver growth as airlift capacity continues to improve accompanied by travel and tourism spending recovery.
Q3 Earnings & Revenues
During third-quarter 2023, LVS reported adjusted earnings per share (EPS) of 55 cents, beating the Zacks Consensus Estimate of 53 cents by 3.8%. In the year-ago quarter, it incurred an adjusted loss of 27 cents per share. Interest expenses (net of amounts capitalized) amounted to $200 million compared with $183 million in the prior-year quarter.
Quarterly revenues of $2.8 billion surpassed the consensus mark of $2.69 billion by 4%. The figure increased 177.2% from $1.01 billion reported in the year-ago quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts (all figures are compared with the prior-year quarter’s reported levels):
The Venetian Macao
Net revenues from The Venetian Macao were $723 million compared with $104 million in the prior year quarter. This was driven by a rise in casino, rooms and mall revenues.
Quarterly revenues from casinos, rooms and malls were $575 million, $55 million and $58 million, respectively, compared with the prior-year quarter’s reported figures of $60 million, $10 million and $27 million. Convention, retail and other revenues were $18 million compared with $4 million reported a year ago. Also, food and beverage revenues were $17 million compared with $3 million in the last year quarter.
Adjusted property EBITDA totaled $290 million against ($37) million in third quarter 2022.
Non-rolling chip drop and rolling chip volume were $2.31 billion and $953 million compared with the year-ago quarter’s reported figure of $292 million and $115 million, respectively.
The segment’s hotel revenue per available room (RevPAR) was $207 million compared with $50 million reported in the year-ago period. Occupancy rates came in at 98% compared with 36.7% year over year.
The Londoner Macao
Net revenues from The Londoner Macao amounted to $518 million compared with $57 million reported in the prior-year period. The upside was backed by an increase in casinos, rooms and malls, along with food and beverage revenues.
Revenues from casinos, rooms, and food and beverage totaled $371 million, $97 million and $25 million, respectively, compared with the year-ago quarter’s reported figure of $24 million, $10 million and $4 million. Mall revenues increased to $17 million from $9 million year over year. However, quarterly revenues from convention, retail and other totaled $8 million, down from $10 million reported in the prior year.
Adjusted property EBITDA totaled $167 million against ($60) million reported a year ago. Our estimate for the metric was $129.4 million.
Non-rolling chip drop and rolling chip volume were $1.74 billion and $1.56 billion, respectively, compared with the year-ago quarter’s reported figure of $116 million and $179 million.
The segment’s hotel RevPAR was $181 million compared with $37 million prior year quarter. Occupancy rates came in at 95.3% compared with 23.2% reported in third quarter of 2022.
The Parisian Macao
Net revenues from The Parisian Macao were $244 million, up from $21 million reported a year ago. The uptick was primarily due to an improvement in casino, rooms, and food and beverage revenues.
Revenues from casinos, rooms, and food and beverage were $181 million, $37 million and $15 million, respectively, compared with the year-ago quarter’s reported figures of $8 million, $5 million and $1 million.
Adjusted property EBITDA totaled $81 million against ($37) million reported a year ago.
Non-rolling chip drop was $789 million compared with $60 million reported a year ago. Rolling chip volume amounted to $277 million compared with $26 million reported in third quarter 2022.
The segment’s hotel RevPAR increased to $160 million from the prior year’s reported figure of $36 million. Occupancy rates came in at 97% compared with 37.1%.
The Plaza Macao and Four Seasons Macao
Net revenues from The Plaza Macao and Four Seasons Macao were $192 million, up from $57 million reported a year ago. The uptrend can be attributed to a rise in casino, rooms and mall revenues.
Casino, rooms and mall revenues were $108 million, $24 million and $50 million, respectively, compared with year ago quarter’s figures of $27 million, $5 million and $23 million.
Adjusted property EBITDA totaled $71 million compared with $6 million reported prior year.
Non-rolling chip drop and rolling chip volume were $570 million and $2.07 billion, respectively, compared with $90 million and $212 million reported in the prior-year quarter.
The segment’s hotel RevPAR was $408 million compared with $90 million reported in third quarter of 2022. Occupancy rates were 86.4% compared with prior year’s reported value of 19.8%.
Sands Macao
Net revenues from Sands Macao were $83 million compared with year ago period’s value of $11 million. This was mainly due to a rise in casino revenues. Casino revenues totaled $75 million compared with $8 million reported in the prior-year quarter.
Adjusted property EBITDA totaled $17 million against ($22) million in the prior year period.
Non-rolling chip drop and rolling chip volume were $414 million and $14 million, respectively, compared with the year-ago quarter’s reported values of $47 million and $16 million.
The segment’s hotel RevPAR was $171 million, up from year ago figure of $69 million. Occupancy rates came in at 98.7% compared with 43.8% reported in prior year quarter.
Marina Bay Sands, Singapore
Net revenues from Marina Bay Sands totaled $1.02 billion, up from $756 million reported in the prior-year quarter. The upside was primarily driven by an increase in casino, rooms, food and beverage, and mall revenues.
Revenues from casinos, and food and beverage totaled $698 million and $89 million, up from the year-ago quarter’s reported values of $510 million and $71 million, respectively. Rooms, malls, and convention, retail and other generated revenues were $125 million, $68 million and $35 million, respectively, compared with $92 million, $55 million and $28 million reported in year-ago quarter.
Adjusted property EBITDA totaled $491 million, up 43.1% year over year.
Non-rolling chip drop and rolling chip volume were $1.94 billion and $8.15 billion, respectively, compared with the year-ago quarter’s reported values of $1.26 billion and $6.84 billion.
The segment’s hotel RevPAR was $656 million compared with $494 million in third quarter of 2022. Occupancy rates were 96.3% compared with 96% reported in prior year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $1.12 billion in third-quarter 2023 compared with $191 million reported in the year-ago quarter.
Balance Sheet
As of Sep 30, 2023, unrestricted cash balances amounted to $5.57 billion compared with $5.77 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $14.17 billion, down from $14.7 billion in the earlier quarter.
In the reported quarter, capital expenditures totaled $330 million, thanks to construction, development and maintenance activities of $44 million in Macao, $141 million at Marina Bay Sands and $145 million in corporate, development and other.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Las Vegas Sands has a strong 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 looks promising. Notably, Las Vegas Sands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Las Vegas Sands (LVS) Up 7.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have added about 7.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Las Vegas Sands due for a pullback? 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 drivers.
Las Vegas Sands Q3 Earnings & Revenues Top Estimates
LVS reported third-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 notably benefited from the recovery in travel and tourism spending in both Macao and Singapore. In Macao, the company witnessed improvement in both gaming and non-gaming segments. Furthermore, Singapore’s Marina Bay Sands portrayed performance growth. Its new suite product and elevated service offerings position the company well to deliver growth as airlift capacity continues to improve accompanied by travel and tourism spending recovery.
Q3 Earnings & Revenues
During third-quarter 2023, LVS reported adjusted earnings per share (EPS) of 55 cents, beating the Zacks Consensus Estimate of 53 cents by 3.8%. In the year-ago quarter, it incurred an adjusted loss of 27 cents per share. Interest expenses (net of amounts capitalized) amounted to $200 million compared with $183 million in the prior-year quarter.
Quarterly revenues of $2.8 billion surpassed the consensus mark of $2.69 billion by 4%. The figure increased 177.2% from $1.01 billion reported in the year-ago quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts (all figures are compared with the prior-year quarter’s reported levels):
The Venetian Macao
Net revenues from The Venetian Macao were $723 million compared with $104 million in the prior year quarter. This was driven by a rise in casino, rooms and mall revenues.
Quarterly revenues from casinos, rooms and malls were $575 million, $55 million and $58 million, respectively, compared with the prior-year quarter’s reported figures of $60 million, $10 million and $27 million. Convention, retail and other revenues were $18 million compared with $4 million reported a year ago. Also, food and beverage revenues were $17 million compared with $3 million in the last year quarter.
Adjusted property EBITDA totaled $290 million against ($37) million in third quarter 2022.
Non-rolling chip drop and rolling chip volume were $2.31 billion and $953 million compared with the year-ago quarter’s reported figure of $292 million and $115 million, respectively.
The segment’s hotel revenue per available room (RevPAR) was $207 million compared with $50 million reported in the year-ago period. Occupancy rates came in at 98% compared with 36.7% year over year.
The Londoner Macao
Net revenues from The Londoner Macao amounted to $518 million compared with $57 million reported in the prior-year period. The upside was backed by an increase in casinos, rooms and malls, along with food and beverage revenues.
Revenues from casinos, rooms, and food and beverage totaled $371 million, $97 million and $25 million, respectively, compared with the year-ago quarter’s reported figure of $24 million, $10 million and $4 million. Mall revenues increased to $17 million from $9 million year over year. However, quarterly revenues from convention, retail and other totaled $8 million, down from $10 million reported in the prior year.
Adjusted property EBITDA totaled $167 million against ($60) million reported a year ago. Our estimate for the metric was $129.4 million.
Non-rolling chip drop and rolling chip volume were $1.74 billion and $1.56 billion, respectively, compared with the year-ago quarter’s reported figure of $116 million and $179 million.
The segment’s hotel RevPAR was $181 million compared with $37 million prior year quarter. Occupancy rates came in at 95.3% compared with 23.2% reported in third quarter of 2022.
The Parisian Macao
Net revenues from The Parisian Macao were $244 million, up from $21 million reported a year ago. The uptick was primarily due to an improvement in casino, rooms, and food and beverage revenues.
Revenues from casinos, rooms, and food and beverage were $181 million, $37 million and $15 million, respectively, compared with the year-ago quarter’s reported figures of $8 million, $5 million and $1 million.
Adjusted property EBITDA totaled $81 million against ($37) million reported a year ago.
Non-rolling chip drop was $789 million compared with $60 million reported a year ago. Rolling chip volume amounted to $277 million compared with $26 million reported in third quarter 2022.
The segment’s hotel RevPAR increased to $160 million from the prior year’s reported figure of $36 million. Occupancy rates came in at 97% compared with 37.1%.
The Plaza Macao and Four Seasons Macao
Net revenues from The Plaza Macao and Four Seasons Macao were $192 million, up from $57 million reported a year ago. The uptrend can be attributed to a rise in casino, rooms and mall revenues.
Casino, rooms and mall revenues were $108 million, $24 million and $50 million, respectively, compared with year ago quarter’s figures of $27 million, $5 million and $23 million.
Adjusted property EBITDA totaled $71 million compared with $6 million reported prior year.
Non-rolling chip drop and rolling chip volume were $570 million and $2.07 billion, respectively, compared with $90 million and $212 million reported in the prior-year quarter.
The segment’s hotel RevPAR was $408 million compared with $90 million reported in third quarter of 2022. Occupancy rates were 86.4% compared with prior year’s reported value of 19.8%.
Sands Macao
Net revenues from Sands Macao were $83 million compared with year ago period’s value of $11 million. This was mainly due to a rise in casino revenues. Casino revenues totaled $75 million compared with $8 million reported in the prior-year quarter.
Adjusted property EBITDA totaled $17 million against ($22) million in the prior year period.
Non-rolling chip drop and rolling chip volume were $414 million and $14 million, respectively, compared with the year-ago quarter’s reported values of $47 million and $16 million.
The segment’s hotel RevPAR was $171 million, up from year ago figure of $69 million. Occupancy rates came in at 98.7% compared with 43.8% reported in prior year quarter.
Marina Bay Sands, Singapore
Net revenues from Marina Bay Sands totaled $1.02 billion, up from $756 million reported in the prior-year quarter. The upside was primarily driven by an increase in casino, rooms, food and beverage, and mall revenues.
Revenues from casinos, and food and beverage totaled $698 million and $89 million, up from the year-ago quarter’s reported values of $510 million and $71 million, respectively. Rooms, malls, and convention, retail and other generated revenues were $125 million, $68 million and $35 million, respectively, compared with $92 million, $55 million and $28 million reported in year-ago quarter.
Adjusted property EBITDA totaled $491 million, up 43.1% year over year.
Non-rolling chip drop and rolling chip volume were $1.94 billion and $8.15 billion, respectively, compared with the year-ago quarter’s reported values of $1.26 billion and $6.84 billion.
The segment’s hotel RevPAR was $656 million compared with $494 million in third quarter of 2022. Occupancy rates were 96.3% compared with 96% reported in prior year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $1.12 billion in third-quarter 2023 compared with $191 million reported in the year-ago quarter.
Balance Sheet
As of Sep 30, 2023, unrestricted cash balances amounted to $5.57 billion compared with $5.77 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $14.17 billion, down from $14.7 billion in the earlier quarter.
In the reported quarter, capital expenditures totaled $330 million, thanks to construction, development and maintenance activities of $44 million in Macao, $141 million at Marina Bay Sands and $145 million in corporate, development and other.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Las Vegas Sands has a strong 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 looks promising. Notably, Las Vegas Sands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.