Back to top

Image: Bigstock

Las Vegas Sands (LVS) Stock Up on Q1 Earnings & Revenue Beat

Read MoreHide Full Article

Las Vegas Sands Corp. (LVS - Free Report) reported better-than-expected earnings and revenues in first-quarter 2019, after missing the Zacks Consensus Estimate in the trailing two quarters. Following the quarterly results, shares of the company increased 2.9% in after-hour trading session on Apr 17. Also, the stock has surged 25.3% in the past six months compared with the industry’s 12.8% growth.

Adjusted earnings came in at 91 cents per share, which declined 12.5% year over year but surpassed the Zacks Consensus Estimate of 85 cents. Net revenues of $3,646 million outpaced the consensus mark of $3,505 million and also improved 1.9% on a year-over-year basis.

In the quarter under review, top-line growth was primarily driven by increased revenues at casino, rooms, mall as well as Food and beverage. The company also generated solid revenues from Macao operations. Meanwhile, Las Vegas revenues declined in the quarter.

Asian Operations

Las Vegas Sands’ Asia business includes the following resorts:

The Venetian Macao

Net revenues increased 3.3% year over year to $897 million on a 3.4% rise in casino revenues, 5.7% growth in malls revenues and 15.8% improvement in Convention, Retail and Other revenues. However, revenues from rooms were flat, whereas food and beverage revenues declined 4.3%.

Adjusted property EBITDA rose 3.7% year over year to $361 million in the quarter under review.

Non-rolling chip drop increased 1%, whereas rolling chip volume declined 4.6%.

Sands Cotai Central

Net revenues improved 5.1% year over year to $577 million driven by a 6.5% increase in casino revenues, 2.4% rise in rooms revenues and 14.3% improvement in mall revenues. In the meantime, food and beverage revenues fell 10.3% from the year-ago level, whereas and convention, retail and other revenues were flat year over year.

Adjusted property EBITDA was $212 million, up 5.5% year over year.

Both non-rolling chip drop and rolling chip volume declined 3.5% and 19.2%, respectively.

Las Vegas Sands Corp. Price, Consensus and EPS Surprise

The Parisian Macao

Revenues amounted to $454 million, mirroring a 26.5% increase year over year. The upside can be mainly attributed to a 33% rise in casino revenues and 20% surge in food and beverage revenues. However, rooms and mall revenues slumped 3% and 20%, respectively.

Adjusted property EBITDA improved 40.5% year over year to $163 million.
Non-rolling chip drop improved 5%, while rolling chip volume declined 14.8%.

The Plaza Macao and Four Seasons Hotel Macao

Net revenues jumped 17.3% to $224 million on a 21.8% increase in casino revenues, 11.1% gain in rooms revenues, and 12.5% increase in food and beverage revenues. Nevertheless, revenues from mall as well as convention, retail and other remained flat year over year.

Adjusted property EBITDA decreased 16.4% to $85 million.

Rolling chip volume increased 46.9%, while non-rolling chip drop fell 14.4%.

Sands Macao

Revenues were down 1.3% year over year to $152 million on a 2.1% decline in casino revenues.

Adjusted property EBITDA declined 14.9% to $40 million.

While rolling chip volume rose 33.9%, non-rolling chip drop increased 0.9%.

Marina Bay Sands, Singapore

Net revenues fell 12% year over year to $767 million due to a 16.6% decline in casino revenues. On the flip side, rooms revenues as well as Food and Beverage revenues rose 2% and 1.9%, respectively. Mall revenues also incraesed 2.4%.

Adjusted property EBITDA of $423 million in the first quarter decreased 21.8%.

Both non-rolling chip drop and rolling chip volume declined 3.9% and 3.3%, respectively.

Domestic Operations

Las Vegas

Net revenues from Las Vegas operations, which comprise The Venetian Las Vegas and The Palazzo including the Sands Expo and Convention Center, decreased 1.3% to $471 million on a 5.8% and 1.8% fall in casino revenues and Convention, Retail and Other revenues, respectively. However, rooms, and food and beverage revenues increased 0.6% and 2.3% each.

Adjusted property EBITDA in the quarter totaled $138 million, which declined 2.1% on a year-over-year basis.

Table games drop fell 14.7%, while slot handle rose 8.1%.

Sands Bethlehem

Net revenues totaled $137 million, up 2.2% year over year driven by a 1.7% gain in casino revenues and 16.7% increase in food and beverage revenues. Meanwhile, revenues from rooms, mall as well as convention, retail and other revenues remained flat in the quarter under review.

Adjusted property EBITDA in the quarter rose 13.8% to $33 million.

Table games drop declined 2.5%, while slot handle rose 1.9%.

Operating Results

On a consolidated basis, adjusted property EBITDA decreased 3.2% year over year to $1.45 billion in the first quarter. The downside can be attributed to a decline in adjusted EBITDA from the Marina Bay Sands, Las Vegas Operating Properties and Sands Bethlehem businesses.

Adjusted net income increased 13.8% year over year to $708 million.

Balance Sheet

As of Mar 31, 2019, unrestricted cash balances were $4.13 billion. Total debt outstanding (excluding finance leases) summed $11.98 billion.

In the reported quarter, capital expenditures amounted to $240 million. This was mainly due to construction, development and maintenance activities of $128 million in Macao, $49 million at Marina Bay Sands and $61 million in Las Vegas.

Quarterly dividend paid by the company was 77 cents per share, while it repurchased $174 million of its common stock.

Las Vegas Sands, which shares space with Melco Resorts & Entertainment Limited (MLCO - Free Report) and MGM Resorts International (MGM - Free Report) , has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Key Pick

A stock, which warrant a look in the same space is PlayAGS, Inc. (AGS - Free Report) carrying the same rank as Las Vegas Sands.

PlayAGS long-term earnings are expected to increase by 12%.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

Published in