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Las Vegas Sands (LVS) Stock Up Despite Q2 Earnings Miss

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Las Vegas Sands Corp. (LVS - Free Report) recently reported second-quarter results, with both earnings and revenues missing the Zacks Consensus Estimate.

However, the company’s shares rallied nearly 5% in afterhours trading on Jul 25, after the company stated that though the operating environment in Macau continued to be a drag during the quarter, it is showing signs of stabilization, primarily in the mass market. This mirrors investors’ hope that a turnaround in Macau might be underway.

In fact, the company informed that its Macau properties witnessed a year-over-year increase in both mass gaming volumes and revenues in June, representing the first month of year-over-year growth in mass gaming since Sep 2014.

Meanwhile, adjusted earnings per share (EPS) of 52 cents missed the Zacks Consensus Estimate of 56 cents by 7.1% and declined 13.3% year over year due to lower revenues and profits.

Las Vegas Sands Corporation. (LVS - Free Report) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

Quarterly net revenues of $2.65 billion missed the Zacks Consensus Estimate of $2.74 billion by 3.2% and declined 9.3% year over year due to weak performance in Macau.

On a consolidated basis, adjusted property EBITDA decreased 6% year over year to $955.1 million during the quarter owing to lower revenues.

Property Details: Asian Operations

The company's Asian business includes the following resorts:

Marina Bay Sands, Singapore

Net revenues declined 0.4% year over year to $710.1 million, owing to a 1.6% decrease in casino revenues and a 3.3% drop in convention retail and other revenues. However, the decrease was partially offset by an 11.6% increase in food and beverage revenues. Adjusted property EBITDA in the quarter was $357 million, down 1.7%.

Meanwhile, Non-Rolling Chip Drop fell 0.7, while Rolling Chip volume decreased 29.1%.

Four Seasons Hotel Macau and Plaza Casino

Net revenues plunged 38.8% to $125 million due to a 46.7% decline in casino revenues, a 25.7% drop in room revenues, a 14.1% fall in food and beverage revenues, and a 25% decrease in convention retail and other revenues. Adjusted property EBITDA decreased 41.2% to $43.7 million.

Notably, Non-Rolling Chip Drop fell 16.8% and Rolling Chip volume decreased a massive 55%.

Sands Macau

Revenues declined 23.4% year over year to $185 million owing to a 23.6% decline in casino revenues, a 10.5% fall in room revenues and a 21.5% drop in food and beverage revenues. Adjusted property EBITDA fell 26.7% to $48.6 million.

Non-Rolling Chip Drop and Rolling Chip volume decreased 15.5% and 16.1%, respectively, during the quarter.

The Venetian Macau

Net revenues decreased 9.9% year over year to $666.1 million due to a 10.3% decline in casino revenues, 11.8% drop in room revenues and 19% plunge in convention, retail and other revenues, partially offset by an increase of 6.1% and 5.8%, respectively, in food and beverage and mall revenues. Adjusted property EBITDA was down 4.2% to $244.4 million in the reported quarter.

Meanwhile, Non-Rolling Chip Drop declined 1.2% and Rolling Chip volume decreased 10%.

Sands Cotai Central

Net revenues fell 14.7% year over year to $472.7 million owing to a 16.5% decline in casino revenues, offset to an extent by 1.1% increase in room revenues, 3.8% rise in food and beverage revenues, 6.8% improvement in mall revenues and 9.3% surge in convention retail and other revenues. Adjusted property EBITDA was $144.1 million, down 12.2%.

Interestingly, Non-Rolling Chip Drop inched up 3.2% while Rolling Chip volume declined 36.1%.

LAS VEGAS SANDS Price, Consensus and EPS Surprise

LAS VEGAS SANDS Price, Consensus and EPS Surprise | LAS VEGAS SANDS Quote

Domestic Operations

Las Vegas Operations

Net revenues from Las Vegas operations, which comprise The Venetian Las Vegas and The Palazzo, increased 3% year over year to $356.5 million driven by an 8.8% increase in room revenues, a 5.8% rise in food and beverage revenues and a 1.7% increase in convention retail and other revenues. However, the increase was partially offset by a 5.2% decline in casino revenues. Adjusted property EBITDA rose 33.8% year over year to $72.5 million.

However, Table Games Drop fell 19.7% in the quarter.

Sands Bethlehem, PA

Net revenues at Sands Bethlehem were $146.5 million in the quarter, up 6.5% year over year, attributable to a 6% increase in casino revenues, a 13% rise in food and beverage revenues, an 11.1% surge in mall revenues and an 8.3% improvement in convention, retail and other revenues. Adjusted property EBITDA increased 10.6% year over year to $37.7 million in the quarter.

Moreover, Table Games Drop were up 0.6% in the quarter.

Zacks Rank & Stocks to Consider

Las Vegas Sands presently has a Zacks Rank #3 (Hold). Better-ranked stocks in the gaming industry include Isle of Capri Casinos, Inc. , Monarch Casino & Resort Inc. (MCRI - Free Report) and Melco Crown Entertainment Limited . While Isle of Capri Casinos and Monarch Casino & Resort sport a Zacks Rank #1 (Strong Buy), Melco Crown Entertainment carries a Zacks Rank #2 (Buy).

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