Factors Setting the Tone for Las Vegas Sands (LVS) Q4 Earnings
Las Vegas Sands Corp. LVS is scheduled to report fourth-quarter 2022 results on Jan 25 2023, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 35%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of 10 cents per share, indicating an improvement of 54.6% from a loss of 22 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1.2 billion. The metric suggests an increase of 18% from the year-ago quarter’s figure.
Las Vegas Sands Corp. Price and EPS Surprise
Las Vegas Sands Corp. price-eps-surprise | Las Vegas Sands Corp. Quote
Let's look at how things have shaped up in the quarter.
Factors at Play
Las Vegas Sands’ fourth-quarter performance is likely to have benefited from the solid recovery in its Singapore business, strong customer demand for the gaming and retail perspective (in Macau) and sales-building initiatives. This and the emphasis on new project investments and revenue diversification efforts will likely have aided the company’s performance in the to-be-reported quarter.
Emphasis on increasing investments in the Singapore market bodes well. During the previous quarter, the company emphasized on its $1-billion capital investment program at Marina Bay Sands, thereby initiating new suite products in premium segment-focused amenities of the resort. The company reported a solid response with respect to the same. Also, it stated additional offerings, including spacious new suite products, are in the pipeline. Given the relaxation of virus-related restrictions in Singapore and other source markets coupled with the improvement in airlift activities, the recovery momentum is likely to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for fourth-quarter net revenues at Marine Bay Sands is pegged at $773 million, suggesting growth of 110% from the prior-year quarter’s figures.
Tighter travel restrictions, quarantine policies and suspension of ferry operations (between Macao and Hong Kong) are likely to have affected the company’s operations in the third quarter. Although sequential improvements in terms of visitation are likely, it is still expected to remain below pre-pandemic levels. The Zacks Consensus Estimate for fourth-quarter net revenues at Sand Cotai Central and Parisian Macao is pegged at $81 million and $27.2 million, suggesting a 41.7% and 59.4% decline, respectively, from the prior-year quarter’s figures. Net revenues at Venetian Macao are pegged at $116 million, indicating a decline of 57.4% from the prior-year quarter’s levels.
What Our Model Says
Our proven model predicts an earnings beat for Las Vegas Sands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Las Vegas Sands has an Earnings ESP of +8.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Red Rock Resorts, Inc. RRR has an Earnings ESP of +17.33% and a Zacks Rank #3. Shares of Red Rock Resorts have declined 2.6% in the past year. RRR’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 66.7%.
Crocs, Inc. CROX has an Earnings ESP of +1.79% and a Zacks Rank #3. Shares of Crocs have gained 15.3% in the past year. CROX’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 18.2%.
Caesars Entertainment, Inc. CZR has an Earnings ESP of +5.69% and a Zacks Rank #3. Shares of Caesars Entertainment have declined 37.4% in the past year. CZR’s earnings surpassed estimates twice in the trailing four quarters and missed twice, the average surprise being negative 3.7%.
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Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report
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