Yahoo Finance Why Is Las Vegas Sands (LVS) Down 1.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Las Vegas Sands (LVS). Shares have lost about 1.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Las Vegas Sands due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Las Vegas Sands Q1 Earnings & Revenues Top Estimates
Las Vegas Sands 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.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 43% due to these changes.
VGM Scores
Currently, Las Vegas Sands has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Las Vegas Sands has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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