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Las Vegas Sands (LVS) Q1 Earnings & Revenues Top Estimates

Las Vegas Sands Corp. LVS reported first-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 benefitted from the relaxation of travel restrictions (of a wider region) and recovery in travel and tourism spending.

Robert G. Goldstein, chairman and CEO, stated, "While travel restrictions and reduced visitation continued to impact our financial performance during the quarter, a robust recovery in travel and tourism spending across our markets is now underway. We remain enthusiastic about the opportunity to welcome more guests back to our properties throughout 2023 and in the years ahead."

Earnings & Revenue Discussion

During the first-quarter 2023, the company reported an adjusted earnings per share (EPS) of 28 cents, beating the Zacks Consensus Estimate of 17 cents. In the prior-year quarter, the company reported an adjusted loss of 40 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $218 million compared with $156 million reported in the prior-year quarter.

Las Vegas Sands Corp. Price, Consensus and EPS Surprise

 

Las Vegas Sands Corp. Price, Consensus and EPS Surprise
Las Vegas Sands Corp. Price, Consensus and EPS Surprise

Las Vegas Sands Corp. price-consensus-eps-surprise-chart | Las Vegas Sands Corp. Quote

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Quarterly revenues of $2,120 million surpassed the consensus mark of $1,856 million by 16.1%. The figure increased 124.8% from the $943 million reported in the prior-year quarter.

Asian Operations

Las Vegas Sands’ Asia business includes the following resorts:

The Venetian Macao

During the first quarter of 2023, net revenues from Venetian Macao were $558 million compared with $227 million reported in the prior-year quarter. The upside was caused by a rise in casino, rooms and mall revenues.

During the quarter, revenues from casinos, rooms and malls were $446 million, $39 million and $51 million compared with $157 million, $16 million and $44 million, respectively, in the prior-year quarter. Convention, Retail and Other revenues were $9 million compared with $4 million reported in the prior-year quarter. Food and beverage revenues came in at $13 million compared with $6 million reported in the prior-year quarter.

Adjusted property EBITDA during the first quarter totaled $210 million compared with $19 million reported in the prior-year quarter. Non-rolling chip drop and rolling chip volumes were $1,769 million and $1,254 million, respectively, compared with $636 million and $720 million reported in the prior-year quarter.

During the quarter under review, the segment’s hotel RevPAR was $177 million compared with $65 million reported in the prior-year quarter. Occupancy rates came in at 85.7% compared with 42.7% in the prior-year quarter.

The Londoner Macao

During the first quarter, net revenues from The Londoner Macao amounted to $283 million compared with $121 million reported in the prior-year quarter. The upside was backed by a rise in casino, rooms, and food and beverage revenues.

During the quarter, revenues from casinos, rooms, and food and beverage totaled $198 million, $55 million and $14 million compared with $79 million, $19 million and $8 million, respectively, in the prior-year quarter. During the quarter, revenues from convention, retail and other totaled $2 million compared with $1 million reported in the prior-year quarter.

Adjusted property EBITDA in the reported quarter totaled $56 million against ($33) million reported in the prior-year quarter.

Non-rolling chip drop volumes were $899 million compared with $354 million reported in the prior-year quarter. Rolling chip drop volumes during the quarter were $1,452 million compared with $369 million reported in the prior-year quarter

During the quarter, the segment’s hotel RevPAR was $108 million compared with $43 million reported in the prior-year quarter. Occupancy rates came in at 46.7% compared with 28% in the prior-year quarter.

The Parisian Macao

During the first quarter, net revenues from The Parisian Macao were $174 million compared with $74 million reported in the prior-year quarter. The upside was primarily due to a rise in casino, rooms, and food and beverage revenues.

During the quarter, revenues from casinos, rooms and food and beverage totaled $128 million, $28 million and $9 million compared with $51 million, $11 million and $3 million, respectively, in the prior-year quarter.

Non-rolling chip drop volumes were $584 million compared with $180 million reported in the prior-year quarter. Rolling chip drop volumes amounted to $48 million compared with $160 million in the year-ago quarter.

The segment’s hotel RevPAR was $121 million compared with $49 million reported in the prior-year quarter. Occupancy rates came in at 77.8% compared with 41.3% in the prior-year quarter.

The Plaza Macao and Four Seasons Macao

During the first quarter, net revenues from The Plaza Macao and Four Seasons Macao were $172 million compared with $102 million reported in the prior-year quarter. The upside can be attributed to a rise in casino, rooms and mall revenues.

During the quarter, casino, rooms and mall revenues came in at $109 million, $20 million and $36 million compared with $55 million, $9 million and $34 million, respectively, in the prior-year quarter.

Adjusted property EBITDA in the reported quarter totaled $75 million compared with $32 million reported in the prior-year quarter.

Non-rolling chip drop and rolling chip volumes were $426 million and $1,227 million compared with $215 million and $574 million reported in the prior-year quarter.

In the quarter under review, the segment’s hotel RevPAR was $351 million compared with $157 million reported in the year-ago quarter. Occupancy rates came in at 66.4% compared with 35.8% in the prior-year quarter.

Sands Macao

During the first quarter, net revenues from Sands Macao were $74 million compared with $20 million reported in the prior-year quarter. The upside was primarily due to a rise in casino revenues. In the quarter under review, casino revenues totaled $67 million compared with $17 million reported in the prior-year quarter.

Adjusted property EBITDA in the first quarter totaled $10 million against ($17) million reported in the prior-year quarter.

Non-rolling chip drop and rolling chip volumes were $346 million and $30 million, respectively, compared with $77 million and $80 million reported in the prior-year quarter.

During the quarter under review, the segment’s hotel RevPAR was $151 million compared with $78 million in the year-ago quarter. Occupancy rates came in at 91% compared with 57.1% in the prior-year quarter.

Marina Bay Sands, Singapore

During the first quarter, net revenues from Marina Bay Sands totaled $848 million compared with $399 million reported in the prior-year quarter. The upside was primarily driven by an increase in casino, rooms, mall and food and beverage revenues.

During the quarter under review, revenues from casinos and food and beverage totaled $593 million and $79 million compared with $268 million and $31 million reported in the prior-year quarter. Revenues from rooms, mall, convention, retail and other came in at $97 million, $53 million and $26 million compared with $38 million, $49 million and $13 million, respectively, reported in the prior-year quarter.

Adjusted property EBITDA in the reported quarter totaled $394 million compared with $121 million reported in the year-ago quarter.

Non-rolling chip drop and rolling chip volumes were $1,676 million and $7,075 million, respectively, compared with $795 million and $1,899 million reported in the prior-year quarter.

In the quarter under review, the segment’s hotel RevPAR was $580 million compared with $215 million reported in the prior-year quarter. Occupancy rates were 97.6% compared with 83.8% in the prior-year quarter.

Operating Results

On a consolidated basis, adjusted property EBITDA totaled $792 million in the first quarter of 2023, compared with $110 million reported in the prior-year quarter.

Balance Sheet

As of Mar 31, 2023, unrestricted cash balances amounted to $6.53 billion compared with $6.31 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $15.97 billion compared with $15.95 billion as of Dec 31, 2022.

In the reported quarter, capital expenditures totaled $166 million, thanks to construction, development and maintenance activities of $38 million in Macao and $115 million at Marina Bay Sands.

Zacks Rank & Key Picks

Las Vegas Sands has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Consumer Discretionary sector are Hilton Grand Vacations Inc. HGV, Crocs, Inc. CROX and PlayAGS, Inc. AGS.

Hilton Grand Vacations currently sports a Zacks Rank #1 (Strong Buy). HGV has a trailing four-quarter earnings surprise of 12.1%, on average. Shares of HGV have declined 7.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for HGV’s 2023 sales and EPS indicates a rise of 7.1% and 3.4%, respectively, from the year-ago period’s levels.

Crocs carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 21.8%, on average. Shares of Crocs have increased 94.7% in the past year.

The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 12.5% and 2.5%, respectively, from the year-ago period’s levels.

PlayAGS carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 133.3%, on average. The stock has increased 0.2% in the past year.

The Zacks Consensus Estimate for AGS 2024 sales and EPS indicates a rise of 3% and 1,873.3%, respectively, from the year-ago period’s estimated levels.

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