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Las Vegas Sands (LVS) Down 4.6% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have lost about 4.6% 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 its most recent earnings report in order to get a better handle on the important drivers.
Las Vegas Sands Q2 Earnings Miss Estimates, Revenues Top
Las Vegas Sands reported mixed second-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. However, the top and the bottom line declined on a year-over-year basis.
Earnings & Revenue Discussion
During second-quarter 2022, the company reported an adjusted loss per share of 34 cents, wider than the Zacks Consensus Estimate of a loss of 25 cents. In the prior-year quarter, the company reported an adjusted loss of 26 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $162 million compared with $158 million reported in the prior-year quarter.
Quarterly revenues of $1,045 million beat the consensus mark of $898 million by 13.9%. However, the figure declined 10.9% from $1,173 million reported in the prior-year quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts:
The Venetian Macao
During the second quarter of 2022, net revenues from Venetian Macao were $150 million compared with $391 million reported in the prior-year quarter. The downside was caused by a decline in casino, rooms and mall revenues.
During the quarter, revenues from casinos, rooms and malls were $91 million, $12 million, and $41 million compared with $307 million, $24 million, and $49 million, respectively, in the prior-year quarter. Convention, Retail and Other revenues were $3 million compared with $4 million reported in the year-ago quarter. Food and beverage revenues came in at $3 million, compared with $7 million reported in the year-ago quarter.
Adjusted property EBITDA during the second quarter totaled ($21) million against $108 million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $332 million and $264 million, respectively, compared with $999 million and $1,510 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $50 million compared with $93 million reported in the prior-year quarter. Occupancy rates came in at 36.8% compared with 58.6% in the prior-year quarter.
The Londoner Macao
During the second quarter, net revenues from The Londoner Macao amounted to $79 million compared with $189 million reported in the prior-year quarter. The downside was primarily caused by a fall in casino, rooms, food and beverage and mall revenues.
During the quarter, revenues from casinos, rooms, food and beverage and mall totaled $42 million, $14 million, $7 million and $12 million compared with $133 million, $28 million, $9 million and $16 million, respectively, in the prior-year quarter. During the quarter, revenues from convention, retail and other totaled $4 million compared with $3 million reported in the prior-year quarter. Adjusted property EBITDA in the reported quarter totaled ($54) million compared with ($5) million reported in the prior-year quarter.
Non-rolling chip drop volumes were $175 million compared with $551 million reported in the prior-year quarter. Rolling chip drop volumes during the quarter were $222 million compared with $1,126 million reported in the prior-year quarter
During the quarter, the segment’s hotel RevPAR was $34 million compared with $67 million reported in the prior-year quarter. Occupancy rates came in at 24.9% compared with 44.2% in the prior-year quarter.
The Parisian Macao
During the second quarter, net revenues from The Parisian Macao were $42 million compared with $101 million reported in the prior-year quarter. The downside was primarily due to a decline in casino, rooms, food and beverage and mall revenues.
During the quarter, revenues from casinos, rooms, food and beverage and mall totaled $24 million, $7 million, $3 million and $7 million compared with $69 million, $17 million, $4 million and $10 million, respectively, in the prior-year quarter.
Non-rolling chip drop volumes were $91 million compared with $358 million reported in the prior-year quarter. Rolling chip drop volumes amounted to $48 million compared with $32 million in the year-ago quarter.
The segment’s hotel RevPAR was $37 million compared with $70 million reported in the prior-year quarter. Occupancy rates came in at 37% compared with 58.4% in the prior-year quarter.
The Plaza Macao and Four Seasons Macao
During the second quarter, net revenues from The Plaza Macao and Four Seasons Macao were $79 million compared with $125 million reported in the prior-year quarter. The downside can be attributed to a fall in casino, rooms and mall revenues.
During the quarter, casino, rooms and mall revenues came in at $38 million, $6 million and $33 million compared with $74 million, $12 million and $34 million, respectively, in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $17 million compared with $44 million reported in the prior-year quarter.
Both non-rolling chip drop and rolling chip volumes were $101 million and $489 million compared with $350 million and $529 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $96 million compared with $215 million reported in the year-ago quarter. Meanwhile, occupancy rates came in at 23.3% compared with 48.4% in the prior-year quarter.
Sands Macao
During the second quarter, net revenues from Sands Macao were $17 million compared with $42 million reported in the prior-year quarter. The downside was primarily due to a decline in casino revenues. In the quarter under review, casino revenues totaled $14 million compared with $37 million reported in the prior-year quarter.
Adjusted property EBITDA in the second quarter totaled ($22) million compared with ($13) million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $57 million and $66 million, respectively, compared with $131 million and $332 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $72 million compared with $100 million in the year-ago quarter. Occupancy rates came in at 56.6% compared with 71.1% in the prior-year quarter.
Marina Bay Sands, Singapore
During the second quarter, net revenues from Marina Bay Sands totaled $679 million compared with $327 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 $500 million and $48 million compared with $223 million and $24 million reported in the prior-year quarter. Revenues from rooms, mall, convention, retail and other came in at $56 million, $55 million and $20 million compared with $32 million, $39 million and $9 million, respectively, reported in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $319 million compared with $112 million reported in the year-ago quarter.
Non-rolling chip drop and rolling chip volumes were $1,137 million and $5,394 million, respectively, compared with $553 million and $612 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $310 million compared with $150 million reported in the prior-year quarter. Occupancy rates were 93.9% compared with 67.9% in the prior-year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $209 million in the second quarter of 2022, compared with $244 million reported in the prior-year quarter.
Balance Sheet
As of Jun 30, 2022, unrestricted cash balances amounted to $6.45 billion compared with $6.43 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $15.35 billion compared with $14.95 billion as of Mar 31, 2022.
In the reported quarter, capital expenditures totaled $198 million, thanks to construction, development and maintenance activities of $67 million in Macao and $97 million at Marina Bay Sands.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Las Vegas Sands has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Las Vegas Sands has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Las Vegas Sands (LVS) Down 4.6% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have lost about 4.6% 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 its most recent earnings report in order to get a better handle on the important drivers.
Las Vegas Sands Q2 Earnings Miss Estimates, Revenues Top
Las Vegas Sands reported mixed second-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. However, the top and the bottom line declined on a year-over-year basis.
Earnings & Revenue Discussion
During second-quarter 2022, the company reported an adjusted loss per share of 34 cents, wider than the Zacks Consensus Estimate of a loss of 25 cents. In the prior-year quarter, the company reported an adjusted loss of 26 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $162 million compared with $158 million reported in the prior-year quarter.
Quarterly revenues of $1,045 million beat the consensus mark of $898 million by 13.9%. However, the figure declined 10.9% from $1,173 million reported in the prior-year quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts:
The Venetian Macao
During the second quarter of 2022, net revenues from Venetian Macao were $150 million compared with $391 million reported in the prior-year quarter. The downside was caused by a decline in casino, rooms and mall revenues.
During the quarter, revenues from casinos, rooms and malls were $91 million, $12 million, and $41 million compared with $307 million, $24 million, and $49 million, respectively, in the prior-year quarter. Convention, Retail and Other revenues were $3 million compared with $4 million reported in the year-ago quarter. Food and beverage revenues came in at $3 million, compared with $7 million reported in the year-ago quarter.
Adjusted property EBITDA during the second quarter totaled ($21) million against $108 million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $332 million and $264 million, respectively, compared with $999 million and $1,510 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $50 million compared with $93 million reported in the prior-year quarter. Occupancy rates came in at 36.8% compared with 58.6% in the prior-year quarter.
The Londoner Macao
During the second quarter, net revenues from The Londoner Macao amounted to $79 million compared with $189 million reported in the prior-year quarter. The downside was primarily caused by a fall in casino, rooms, food and beverage and mall revenues.
During the quarter, revenues from casinos, rooms, food and beverage and mall totaled $42 million, $14 million, $7 million and $12 million compared with $133 million, $28 million, $9 million and $16 million, respectively, in the prior-year quarter. During the quarter, revenues from convention, retail and other totaled $4 million compared with $3 million reported in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled ($54) million compared with ($5) million reported in the prior-year quarter.
Non-rolling chip drop volumes were $175 million compared with $551 million reported in the prior-year quarter. Rolling chip drop volumes during the quarter were $222 million compared with $1,126 million reported in the prior-year quarter
During the quarter, the segment’s hotel RevPAR was $34 million compared with $67 million reported in the prior-year quarter. Occupancy rates came in at 24.9% compared with 44.2% in the prior-year quarter.
The Parisian Macao
During the second quarter, net revenues from The Parisian Macao were $42 million compared with $101 million reported in the prior-year quarter. The downside was primarily due to a decline in casino, rooms, food and beverage and mall revenues.
During the quarter, revenues from casinos, rooms, food and beverage and mall totaled $24 million, $7 million, $3 million and $7 million compared with $69 million, $17 million, $4 million and $10 million, respectively, in the prior-year quarter.
Non-rolling chip drop volumes were $91 million compared with $358 million reported in the prior-year quarter. Rolling chip drop volumes amounted to $48 million compared with $32 million in the year-ago quarter.
The segment’s hotel RevPAR was $37 million compared with $70 million reported in the prior-year quarter. Occupancy rates came in at 37% compared with 58.4% in the prior-year quarter.
The Plaza Macao and Four Seasons Macao
During the second quarter, net revenues from The Plaza Macao and Four Seasons Macao were $79 million compared with $125 million reported in the prior-year quarter. The downside can be attributed to a fall in casino, rooms and mall revenues.
During the quarter, casino, rooms and mall revenues came in at $38 million, $6 million and $33 million compared with $74 million, $12 million and $34 million, respectively, in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $17 million compared with $44 million reported in the prior-year quarter.
Both non-rolling chip drop and rolling chip volumes were $101 million and $489 million compared with $350 million and $529 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $96 million compared with $215 million reported in the year-ago quarter. Meanwhile, occupancy rates came in at 23.3% compared with 48.4% in the prior-year quarter.
Sands Macao
During the second quarter, net revenues from Sands Macao were $17 million compared with $42 million reported in the prior-year quarter. The downside was primarily due to a decline in casino revenues. In the quarter under review, casino revenues totaled $14 million compared with $37 million reported in the prior-year quarter.
Adjusted property EBITDA in the second quarter totaled ($22) million compared with ($13) million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $57 million and $66 million, respectively, compared with $131 million and $332 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $72 million compared with $100 million in the year-ago quarter. Occupancy rates came in at 56.6% compared with 71.1% in the prior-year quarter.
Marina Bay Sands, Singapore
During the second quarter, net revenues from Marina Bay Sands totaled $679 million compared with $327 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 $500 million and $48 million compared with $223 million and $24 million reported in the prior-year quarter. Revenues from rooms, mall, convention, retail and other came in at $56 million, $55 million and $20 million compared with $32 million, $39 million and $9 million, respectively, reported in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $319 million compared with $112 million reported in the year-ago quarter.
Non-rolling chip drop and rolling chip volumes were $1,137 million and $5,394 million, respectively, compared with $553 million and $612 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $310 million compared with $150 million reported in the prior-year quarter. Occupancy rates were 93.9% compared with 67.9% in the prior-year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $209 million in the second quarter of 2022, compared with $244 million reported in the prior-year quarter.
Balance Sheet
As of Jun 30, 2022, unrestricted cash balances amounted to $6.45 billion compared with $6.43 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $15.35 billion compared with $14.95 billion as of Mar 31, 2022.
In the reported quarter, capital expenditures totaled $198 million, thanks to construction, development and maintenance activities of $67 million in Macao and $97 million at Marina Bay Sands.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Las Vegas Sands has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Las Vegas Sands has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.