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Why Is Las Vegas Sands (LVS) Down 3.3% Since Last Earnings Report?
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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 3.3% 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 catalysts.
Las Vegas Sands Q4 Earnings & Revenues Lag Estimates
Las Vegas Sands reported fourth-quarter 2022 results, with earnings and revenues missing the Zacks Consensus Estimate. However, the top and the bottom line improved on a year-over-year basis.
Earnings & Revenue Discussion
During fourth-quarter 2022, the company reported an adjusted loss per share of 19 cents, wider than the Zacks Consensus Estimate of a loss of 10 cents. In the prior-year quarter, the company reported an adjusted loss of 22 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $201 million compared with $152 million reported in the prior-year quarter.
Quarterly revenues of $1,117 million missed the consensus mark of $1,190 million by 6%. However, the figure increased 10.8% from the $1,008 million reported in the prior-year quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts:
The Venetian Macao
During the fourth quarter of 2022, net revenues from Venetian Macao were $201 million compared with $272 million reported in the prior-year quarter. The downside was caused by a decline in casino and mall revenues.
During the quarter, revenues from casinos, rooms and malls were $130 million, $17 million and $43 million compared with $195 million, $16 million and $51 million, respectively, in the prior-year quarter. Convention, Retail and Other revenues were $6 million, compared with $5 million reported in the prior-year quarter. Food and beverage revenues came in at $5 million flat year over year.
Adjusted property EBITDA during the fourth quarter totaled $14 million compared with $67 million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $491 million and $197 million, respectively, compared with $695 million and $890 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $73 million compared with $69 million reported in the prior-year quarter. Occupancy rates came in at 50.2% compared with 44.2% in the prior-year quarter.
The Londoner Macao
During the fourth quarter, net revenues from The Londoner Macao amounted to $93 million compared with $139 million reported in the prior-year quarter. The downside was 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 $49 million, $18 million, $7 million and $12 million compared with $92 million, $21 million, $8 million and $13 million, respectively, in the prior-year quarter. During the quarter, revenues from convention, retail and other totaled $7 million compared with $5 million reported in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled ($42) million compared with ($23) million reported in the prior-year quarter.
Non-rolling chip drop volumes were $252 million compared with $408 million reported in the prior-year quarter. Rolling chip drop volumes during the quarter were $165 million compared with $759 million reported in the prior-year quarter
During the quarter, the segment’s hotel RevPAR was $52 million compared with $69 million reported in the prior-year quarter. Occupancy rates came in at 30.7% compared with 41.5% in the prior-year quarter.
The Parisian Macao
During the fourth quarter, net revenues from The Parisian Macao were $51 million compared with $67 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 $33 million, $10 million, $3 million and $5 million compared with $41 million, $13 million, $4 million and $9 million, respectively, in the prior-year quarter.
Non-rolling chip drop volumes were $123 million compared with $242 million reported in the prior-year quarter. Rolling chip drop volumes amounted to $48 million compared with $181 million in the year-ago quarter.
The segment’s hotel RevPAR was $42 million compared with $60 million reported in the prior-year quarter. Occupancy rates came in at 36.1% compared with 50.8% in the prior-year quarter.
The Plaza Macao and Four Seasons Macao
During the fourth quarter, net revenues from The Plaza Macao and Four Seasons Macao were $75 million compared with $140 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 $26 million, $9 million and $37 million compared with $65 million, $11 million and $59 million, respectively, in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $26 million compared with $63 million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $144 million and $177 million compared with $265 million and $386 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $140 million compared with $192 million reported in the year-ago quarter. Occupancy rates came in at 31% compared with 43.9% in the prior-year quarter.
Sands Macao
During the fourth quarter, net revenues from Sands Macao were $17 million compared with $25 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 $21 million reported in the prior-year quarter.
Adjusted property EBITDA in the fourth quarter totaled ($20) million compared with ($17) million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $56 million and $30 million, respectively, compared with $91 million and $120 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $67 million compared with $93 million in the year-ago quarter. Occupancy rates came in at 44.1% compared with 67% in the prior-year quarter.
Marina Bay Sands, Singapore
During the fourth quarter, net revenues from Marina Bay Sands totaled $682 million compared with $368 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 $402 million and $84 million compared with $237 million and $28 million reported in the prior-year quarter. Revenues from rooms, mall, convention, retail and other came in at $99 million, $67 million and $30 million compared with $40 million, $49 million and $14 million, respectively, reported in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $273 million compared with $177 million reported in the year-ago quarter.
Non-rolling chip drop and rolling chip volumes were $1,450 million and $7,093 million, respectively, compared with $814 million and $1,318 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $541 million compared with $205 million reported in the prior-year quarter. Occupancy rates were 98.3% compared with 79.1% in the prior-year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $222 million in the fourth quarter of 2022, compared with $251 million reported in the prior-year quarter.
Balance Sheet
As of Dec 31, 2022, unrestricted cash balances amounted to $6.31 billion compared with $5.84 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $15.95 billion compared with $15.27 billion as of Sep 30, 2022.
In the reported quarter, capital expenditures totaled $147 million, thanks to construction, development and maintenance activities of $44 million in Macao and $93 million at Marina Bay Sands.
2022 Highlights
Net revenues in 2022 came in at $4,110 million compared with $4,234 million in 2021.
Operating loss in 2022 came in at $792 million compared with $689 million in 2021.
In 2022, diluted loss per share came in at $1.20 per share compared with $1.18 reported in the previous year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 340% due to these changes.
VGM Scores
At this time, Las Vegas Sands has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, 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 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 #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Las Vegas Sands (LVS) Down 3.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have lost about 3.3% 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 catalysts.
Las Vegas Sands Q4 Earnings & Revenues Lag Estimates
Las Vegas Sands reported fourth-quarter 2022 results, with earnings and revenues missing the Zacks Consensus Estimate. However, the top and the bottom line improved on a year-over-year basis.
Earnings & Revenue Discussion
During fourth-quarter 2022, the company reported an adjusted loss per share of 19 cents, wider than the Zacks Consensus Estimate of a loss of 10 cents. In the prior-year quarter, the company reported an adjusted loss of 22 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $201 million compared with $152 million reported in the prior-year quarter.
Quarterly revenues of $1,117 million missed the consensus mark of $1,190 million by 6%. However, the figure increased 10.8% from the $1,008 million reported in the prior-year quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts:
The Venetian Macao
During the fourth quarter of 2022, net revenues from Venetian Macao were $201 million compared with $272 million reported in the prior-year quarter. The downside was caused by a decline in casino and mall revenues.
During the quarter, revenues from casinos, rooms and malls were $130 million, $17 million and $43 million compared with $195 million, $16 million and $51 million, respectively, in the prior-year quarter. Convention, Retail and Other revenues were $6 million, compared with $5 million reported in the prior-year quarter. Food and beverage revenues came in at $5 million flat year over year.
Adjusted property EBITDA during the fourth quarter totaled $14 million compared with $67 million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $491 million and $197 million, respectively, compared with $695 million and $890 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $73 million compared with $69 million reported in the prior-year quarter. Occupancy rates came in at 50.2% compared with 44.2% in the prior-year quarter.
The Londoner Macao
During the fourth quarter, net revenues from The Londoner Macao amounted to $93 million compared with $139 million reported in the prior-year quarter. The downside was 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 $49 million, $18 million, $7 million and $12 million compared with $92 million, $21 million, $8 million and $13 million, respectively, in the prior-year quarter. During the quarter, revenues from convention, retail and other totaled $7 million compared with $5 million reported in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled ($42) million compared with ($23) million reported in the prior-year quarter.
Non-rolling chip drop volumes were $252 million compared with $408 million reported in the prior-year quarter. Rolling chip drop volumes during the quarter were $165 million compared with $759 million reported in the prior-year quarter
During the quarter, the segment’s hotel RevPAR was $52 million compared with $69 million reported in the prior-year quarter. Occupancy rates came in at 30.7% compared with 41.5% in the prior-year quarter.
The Parisian Macao
During the fourth quarter, net revenues from The Parisian Macao were $51 million compared with $67 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 $33 million, $10 million, $3 million and $5 million compared with $41 million, $13 million, $4 million and $9 million, respectively, in the prior-year quarter.
Non-rolling chip drop volumes were $123 million compared with $242 million reported in the prior-year quarter. Rolling chip drop volumes amounted to $48 million compared with $181 million in the year-ago quarter.
The segment’s hotel RevPAR was $42 million compared with $60 million reported in the prior-year quarter. Occupancy rates came in at 36.1% compared with 50.8% in the prior-year quarter.
The Plaza Macao and Four Seasons Macao
During the fourth quarter, net revenues from The Plaza Macao and Four Seasons Macao were $75 million compared with $140 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 $26 million, $9 million and $37 million compared with $65 million, $11 million and $59 million, respectively, in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $26 million compared with $63 million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $144 million and $177 million compared with $265 million and $386 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $140 million compared with $192 million reported in the year-ago quarter. Occupancy rates came in at 31% compared with 43.9% in the prior-year quarter.
Sands Macao
During the fourth quarter, net revenues from Sands Macao were $17 million compared with $25 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 $21 million reported in the prior-year quarter.
Adjusted property EBITDA in the fourth quarter totaled ($20) million compared with ($17) million reported in the prior-year quarter.
Non-rolling chip drop and rolling chip volumes were $56 million and $30 million, respectively, compared with $91 million and $120 million reported in the prior-year quarter.
During the quarter under review, the segment’s hotel RevPAR was $67 million compared with $93 million in the year-ago quarter. Occupancy rates came in at 44.1% compared with 67% in the prior-year quarter.
Marina Bay Sands, Singapore
During the fourth quarter, net revenues from Marina Bay Sands totaled $682 million compared with $368 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 $402 million and $84 million compared with $237 million and $28 million reported in the prior-year quarter. Revenues from rooms, mall, convention, retail and other came in at $99 million, $67 million and $30 million compared with $40 million, $49 million and $14 million, respectively, reported in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $273 million compared with $177 million reported in the year-ago quarter.
Non-rolling chip drop and rolling chip volumes were $1,450 million and $7,093 million, respectively, compared with $814 million and $1,318 million reported in the prior-year quarter.
In the quarter under review, the segment’s hotel RevPAR was $541 million compared with $205 million reported in the prior-year quarter. Occupancy rates were 98.3% compared with 79.1% in the prior-year quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $222 million in the fourth quarter of 2022, compared with $251 million reported in the prior-year quarter.
Balance Sheet
As of Dec 31, 2022, unrestricted cash balances amounted to $6.31 billion compared with $5.84 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $15.95 billion compared with $15.27 billion as of Sep 30, 2022.
In the reported quarter, capital expenditures totaled $147 million, thanks to construction, development and maintenance activities of $44 million in Macao and $93 million at Marina Bay Sands.
2022 Highlights
Net revenues in 2022 came in at $4,110 million compared with $4,234 million in 2021.
Operating loss in 2022 came in at $792 million compared with $689 million in 2021.
In 2022, diluted loss per share came in at $1.20 per share compared with $1.18 reported in the previous year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 340% due to these changes.
VGM Scores
At this time, Las Vegas Sands has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, 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 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 #1 (Strong Buy). We expect an above average return from the stock in the next few months.