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Las Vegas Sands (LVS) Down 1.5% Since Earnings Report: Can It Rebound?

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About a month has gone by since the last earnings report for Las Vegas Sands Corp. (LVS - Free Report) . Shares have lost about 1.5% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it 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 Top on Solid Revenue Growth

Las Vegas Sands reported better-than-expected second-quarter 2017 results with both earnings and revenues beating the Zacks Consensus Estimate.

Adjusted earnings per share (EPS) of $0.73 surpassed the Zacks Consensus Estimate of $0.61 by 19.7%, and increased 37.7% year over year owing to higher revenues.

Quarterly net revenues of $3.14 billion also topped the Zacks Consensus Estimate of $3.02 billion by over 4%, and increased 18.6% year over year. This improvement was primarily attributable to robust performance at its Las Vegas properties and mostly solid results in Macao.

On a consolidated basis, adjusted property earnings before interest, taxes, depreciation and amortization (EBITDA) was up 26.5% year over year to $1.21 billion during the quarter, owing to higher revenues.

Property Details: Asian Operations

The company's Asian business includes the following resorts:

The Venetian Macao

Net revenue rose 3.2% year over year to $687 million, owing to a 3.2% increase in casino revenues, a 5.9% improvement in mall revenues and a 16.7% gain in convention, retail and other revenues, offset to an extent by 8.9% and 4.8% decline in rooms revenues and food and beverage revenues, respectively.

Adjusted property EBITDA was up 4.9% year over year to $256 million in the reported quarter.

Non-Rolling Chip Drop rose 2.3% but Rolling Chip volume declined 24.7%.

Sands Cotai Central

Net revenue fell 5.9% year over year to $445 million, owing to a 7.9% decline in casino revenues and a 6.3% drop in mall revenues, somewhat offset by a 1.6% rise in rooms revenues along with a 4.2% increase in food and beverage revenues. Meanwhile, convention, retail and other revenues remained flat in the quarter.

Adjusted property EBITDA was $133 million, down 8.3% year over year.

Moreover, Non-Rolling Chip Drop and Rolling Chip volume fell 9.5% and 18.2%, respectively.

The Parisian Macao

Revenues soared 13.5% year over year to $361 million owing to a 15.4% surge in casino revenues and a 10.3% rise in rooms revenues. Notably, food and beverage, mall, along with convention retail and other revenues remained flat.

Adjusted property EBITDA jumped 29.3% to $106 million.

Meanwhile, though Non-Rolling Chip Drop dipped 1%, Rolling Chip volume witnessed an increase of 1%.

Going forward, the company expects The Parisian Macao to keep on delivering growth as the Macao market grows and as it continues to refine the property's service offerings to appeal to the fastest growing and most lucrative segments in the Macao market.

The Plaza Macao and Four Seasons Hotel Macao

Net revenue escalated 9.6% to $137 million, due to a 13.5% increase in casino revenues and a 20% improvement in food and beverage revenues. However, rooms revenues witnessed a decline of 11.1%. Meanwhile, mall revenues along with convention retail and other revenues remained flat.

Moreover, adjusted property EBITDA soared 34.1% to $59 million.

Both Non-Rolling Chip Drop and Rolling Chip volume increased 28.3% and 28.4%, respectively.

Sands Macao

Revenues decreased 13% year over year to $161 million, owing to a 12.8% decline in casino revenues and a 50% plunge in convention retail and other revenues. Notably, food and beverage rose 16.7% while rooms revenues remained flat during the reported quarter.

Adjusted property EBITDA declined 18.8% to $39 million.

Moreover, Non-Rolling Chip Drop and Rolling Chip volume decreased 3.7% and 50.5%, respectively.

Marina Bay Sands, Singapore

Net revenue rose 17.7% year over year to $836 million, owing to a 23.9% increase in casino revenues.  While rooms revenues, food and beverage revenues, and convention retail and other revenues fell 3.6%, 6.5% and 4.2%, respectively, mall revenues remained flat,

Adjusted property EBITDA in the quarter was $492 million, up 37.8%.

Though Non-Rolling Chip Drop fell 2.7%, Rolling Chip volume increased 29.2%.

Notably, Marina Bay Sands' inventive programming, steady mass gaming play, potent non-gaming revenues and higher hold in VIP play boosted its performance in the reported quarter.

Domestic Operations

Las Vegas Operations

Net revenue from Las Vegas operations, which comprise The Venetian Las Vegas and The Palazzo, was up a solid 7.9% year over year to $384 million owing to a 19.5% rise in casino revenues and a 15.6% improvement in convention retail and other revenues. The results were however somewhat offset by 2.1% and 2.6% decreases in rooms and food andbeverage revenues, respectively.

Adjusted property EBITDA rose 9.7% year over year to $79 million.

However, Table Games Drop fell 6.1% in the quarter.

Sands Bethlehem, PA

Net revenue at Sands Bethlehem was $147 million, up 0.7% year over year attributable to a 0.7% rise in casino revenues. Rooms, mall, and convention, retail and other revenues remained flat in the quarter. However, food and beverage revenues declined 12.5%.

Adjusted property EBITDA was down 2.6% year over year to $37 million.

Moreover, Table Games Drop was down 4.5%.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the past month as none of them issued any earnings estimate revisions.

Las Vegas Sands Corp. Price and Consensus

 

Las Vegas Sands Corp. Price and Consensus | Las Vegas Sands Corp. Quote

VGM Scores

At this time, the stock has a nice Growth Score of B, however its Momentum is lagging a bit with a C. Also, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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.

Our style scores indicate that the stock is more suitable for momentum investors than growth investors.

Outlook

The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.




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