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Why Is Las Vegas Sands (LVS) Up 4.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have added about 4.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Las Vegas Sands due for a pullback? 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 Q2 Earnings & Revenues Lag, Up Y/Y
Las Vegas Sands reported lower-than-expected second-quarter 2024 results, with earnings and net revenues missing the Zacks Consensus Estimate. That said, the metrics grew on a year-over-year basis.
The quarterly results reflect continuous performance growth in Macao and Singapore, attributable to the company’s committed investment opportunities undertaken to enhance the business and deliver top-tier customer experiences. Travel recovery and improving tourism spending are encouraging for the prospects in Macao, however, the fall in visitation levels from the pre-pandemic levels remains a concern.
Nonetheless, the continuous investments made by the company to enhance Macao’s business performance and support its development as a world center of business bode well for upcoming opportunities.
Moreover, Marina Bay Sands in Singapore also contributed to the top-line growth. The company’s new suite product and elevated service offerings position it well for additional growth in the upcoming period as travel and tourism spending in Asia continues to advance.
Q2 Earnings & Revenues
Las Vegas Sands reported adjusted earnings per share (EPS) of 55 cents, which missed the Zacks Consensus Estimate of 59 cents by 6.8%. In the year-ago quarter, it had reported an EPS of 46 cents. Interest expense (net of amounts capitalized) totaled $186 million compared with $210 million reported in the year-ago quarter.
Quarterly net revenues of $2.76 billion also lagged the consensus mark of $2.84 billion by 2.7%. On the other hand, the reported figure increased 8.6% from $2.54 billion reported in the year-ago quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts (all figures are compared with the year-ago quarter’s reported levels):
The Venetian Macao
Net revenues from The Venetian Macao were $686 million compared with $653 million in the year-ago quarter. A rise in casino, rooms and mall revenues drove the upside.
Quarterly revenues from casino, rooms and mall were $556 million, $50 million and $55 million, respectively, compared with the year-ago quarter’s reported figures of $523 million, $48 million and $53 million. Convention, retail and other revenues were $9 million, down from $12 million reported a year ago. Food and beverage revenues were $16 million compared with $17 million in the year-ago quarter.
Adjusted property EBITDA totaled $262 million compared with $252 million reported in the second quarter of 2023.
Non-rolling chip drop and rolling chip volumes were $2.33 billion and $795 million, respectively, compared with the year-ago quarter’s reported figure of $2.17 billion and $1.09 billion.
The segment’s hotel revenue per available room (RevPAR) was $191 million compared with $198 million reported in the year-ago period. Occupancy rates were 96.4%, up from the prior year’s reported value of 94.6%.
The Londoner Macao
Net revenues from The Londoner Macao amounted to $444 million compared with $402 million reported in the prior-year period. Increased casino, food and beverage, and convention, retail and other revenues backed the upside.
Revenues from casino, rooms, and food and beverage totaled $318 million, $77 million and $22 million, respectively, compared with the year-ago quarter’s reported figure of $281 million, $80 million and $20 million. Mall revenues increased to $17 million from $16 million in the year-ago quarter. Quarterly revenues from convention, retail and other totaled $10 million, up from $5 million reported in the prior-year quarter.
Adjusted property EBITDA totaled $103 million, flat year over year.
Non-rolling chip drop and rolling chip volume were $1.65 billion and $2.36 billion, respectively, up from the year-ago quarter’s reported figures of $1.35 billion and $1.99 billion.
The segment’s hotel RevPAR was $184 million compared with $161 million in the year-ago quarter. Occupancy rates were 94.4% compared with 81.8% reported in the second quarter of 2023.
The Parisian Macao
Net revenues from The Parisian Macao were $265 million, up from $239 million reported a year ago. The uptick was primarily due to improvements in casino, and food and beverage revenues. We estimated the metric to be $312.7 million.
Revenues from casino, rooms, and food and beverage were $207 million, $32 million and $17 million, respectively, compared with the year-ago quarter’s reported figures of $183 million, $35 million and $11 million. Mall revenues declined to $7 million from $8 million in the year-ago quarter. Quarterly revenues from convention, retail and other totaled $2 million, flat year over year.
Adjusted property EBITDA totaled $83 million, up from $74 million reported a year ago. Our estimate for the metric was $74.5 million.
Non-rolling chip drop totaled $1.09 million compared with $776 million reported a year ago.
The segment’s hotel RevPAR decreased to $141 million from the prior year’s reported figure of $153 million. Occupancy rates were 95.7% compared with the prior year’s reported value of 98%.
The Plaza Macao and Four Seasons Macao
Net revenues from The Plaza Macao and Four Seasons Macao were $250 million, up from $223 million reported a year ago. The uptrend can be attributed to an increase in casino revenues.
Casino and mall revenues were $178 million and $38 million, respectively, compared with the year-ago quarter’s figures of $150 million and $39 million. Revenues from rooms and food and beverage were flat year over year at $25 million and $8 million, respectively.
Adjusted property EBITDA totaled $100 million compared with $91 million reported in the year-ago quarter.
Non-rolling chip drop and rolling chip volume were $748 million and $2.45 billion, respectively, compared with $567 million and $1.18 billion reported in the year-ago quarter.
The segment’s hotel RevPAR increased to $432 million from $407 million reported in the second quarter of 2023. Occupancy rates were 8.2% compared with the prior year’s reported value of 84.8%.
Sands Macao
Net revenues from Sands Macao were down to $79 million from the year-ago period’s value of $84 million. The downturn was mainly driven by the decline in casino revenues.
Casino revenues totaled $70 million compared with $76 million reported in the year-ago quarter.
Adjusted property EBITDA totaled $10 million, down from $15 million in the prior-year period.
Non-rolling chip drop and rolling chip volume were $401 million and $24 million, respectively, down from the year-ago quarter’s reported values of $406 million and $36 million.
The segment’s hotel RevPAR was $170 million, up from the year-ago figure of $160 million. Occupancy rates were 99% compared with 94.6% reported in the year-ago quarter.
Marina Bay Sands, Singapore
Net revenues from Marina Bay Sands totaled $1.02 billion, up from $925 million reported in the year-ago quarter. The upside was primarily driven by an increase in casino, rooms and convention, retail and other revenues.
Revenues from casino, and food and beverage totaled $706 million and $82 million, respectively, compared with the year-ago quarter’s reported values of $649 million and $84 million. Rooms, mall and convention, retail and other generated revenues were $124 million, $58 million and $46 million, respectively, compared with $104 million, $57 million and $31 million reported in the year-ago quarter.
Adjusted property EBITDA totaled $512 million, up from $432 million reported in the year-ago quarter.
Non-rolling chip drop and rolling chip volume were $2.04 billion and $6.08 billion, respectively, compared with the year-ago quarter’s reported values of $1.87 billion and $6.01 billion.
The segment’s hotel RevPAR was $759 million, up from $579 million in the second quarter of 2023. Occupancy rates were 95.3% compared with 97% reported in the year-ago quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $1.07 billion in the second quarter compared with $973 million reported in the year-ago quarter.
Financials
As of Jun 30, 2024, Las Vegas Sands had unrestricted cash balances of $4.71 billion compared with $4.96 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $13.72 billion, slightly down sequentially from $13.94 billion.
In the reported quarter, capital expenditures totaled $285 million, comprising construction, development and maintenance activities of $131 million in Macao, $140 million at Marina Bay Sands, and $14 million in corporate, development and other.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -11.41% due to these changes.
VGM Scores
At this time, Las Vegas Sands has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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. Notably, Las Vegas Sands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Las Vegas Sands (LVS) Up 4.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Las Vegas Sands (LVS - Free Report) . Shares have added about 4.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Las Vegas Sands due for a pullback? 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 Q2 Earnings & Revenues Lag, Up Y/Y
Las Vegas Sands reported lower-than-expected second-quarter 2024 results, with earnings and net revenues missing the Zacks Consensus Estimate. That said, the metrics grew on a year-over-year basis.
The quarterly results reflect continuous performance growth in Macao and Singapore, attributable to the company’s committed investment opportunities undertaken to enhance the business and deliver top-tier customer experiences. Travel recovery and improving tourism spending are encouraging for the prospects in Macao, however, the fall in visitation levels from the pre-pandemic levels remains a concern.
Nonetheless, the continuous investments made by the company to enhance Macao’s business performance and support its development as a world center of business bode well for upcoming opportunities.
Moreover, Marina Bay Sands in Singapore also contributed to the top-line growth. The company’s new suite product and elevated service offerings position it well for additional growth in the upcoming period as travel and tourism spending in Asia continues to advance.
Q2 Earnings & Revenues
Las Vegas Sands reported adjusted earnings per share (EPS) of 55 cents, which missed the Zacks Consensus Estimate of 59 cents by 6.8%. In the year-ago quarter, it had reported an EPS of 46 cents. Interest expense (net of amounts capitalized) totaled $186 million compared with $210 million reported in the year-ago quarter.
Quarterly net revenues of $2.76 billion also lagged the consensus mark of $2.84 billion by 2.7%. On the other hand, the reported figure increased 8.6% from $2.54 billion reported in the year-ago quarter.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts (all figures are compared with the year-ago quarter’s reported levels):
The Venetian Macao
Net revenues from The Venetian Macao were $686 million compared with $653 million in the year-ago quarter. A rise in casino, rooms and mall revenues drove the upside.
Quarterly revenues from casino, rooms and mall were $556 million, $50 million and $55 million, respectively, compared with the year-ago quarter’s reported figures of $523 million, $48 million and $53 million. Convention, retail and other revenues were $9 million, down from $12 million reported a year ago. Food and beverage revenues were $16 million compared with $17 million in the year-ago quarter.
Adjusted property EBITDA totaled $262 million compared with $252 million reported in the second quarter of 2023.
Non-rolling chip drop and rolling chip volumes were $2.33 billion and $795 million, respectively, compared with the year-ago quarter’s reported figure of $2.17 billion and $1.09 billion.
The segment’s hotel revenue per available room (RevPAR) was $191 million compared with $198 million reported in the year-ago period. Occupancy rates were 96.4%, up from the prior year’s reported value of 94.6%.
The Londoner Macao
Net revenues from The Londoner Macao amounted to $444 million compared with $402 million reported in the prior-year period. Increased casino, food and beverage, and convention, retail and other revenues backed the upside.
Revenues from casino, rooms, and food and beverage totaled $318 million, $77 million and $22 million, respectively, compared with the year-ago quarter’s reported figure of $281 million, $80 million and $20 million. Mall revenues increased to $17 million from $16 million in the year-ago quarter. Quarterly revenues from convention, retail and other totaled $10 million, up from $5 million reported in the prior-year quarter.
Adjusted property EBITDA totaled $103 million, flat year over year.
Non-rolling chip drop and rolling chip volume were $1.65 billion and $2.36 billion, respectively, up from the year-ago quarter’s reported figures of $1.35 billion and $1.99 billion.
The segment’s hotel RevPAR was $184 million compared with $161 million in the year-ago quarter. Occupancy rates were 94.4% compared with 81.8% reported in the second quarter of 2023.
The Parisian Macao
Net revenues from The Parisian Macao were $265 million, up from $239 million reported a year ago. The uptick was primarily due to improvements in casino, and food and beverage revenues. We estimated the metric to be $312.7 million.
Revenues from casino, rooms, and food and beverage were $207 million, $32 million and $17 million, respectively, compared with the year-ago quarter’s reported figures of $183 million, $35 million and $11 million. Mall revenues declined to $7 million from $8 million in the year-ago quarter. Quarterly revenues from convention, retail and other totaled $2 million, flat year over year.
Adjusted property EBITDA totaled $83 million, up from $74 million reported a year ago. Our estimate for the metric was $74.5 million.
Non-rolling chip drop totaled $1.09 million compared with $776 million reported a year ago.
The segment’s hotel RevPAR decreased to $141 million from the prior year’s reported figure of $153 million. Occupancy rates were 95.7% compared with the prior year’s reported value of 98%.
The Plaza Macao and Four Seasons Macao
Net revenues from The Plaza Macao and Four Seasons Macao were $250 million, up from $223 million reported a year ago. The uptrend can be attributed to an increase in casino revenues.
Casino and mall revenues were $178 million and $38 million, respectively, compared with the year-ago quarter’s figures of $150 million and $39 million. Revenues from rooms and food and beverage were flat year over year at $25 million and $8 million, respectively.
Adjusted property EBITDA totaled $100 million compared with $91 million reported in the year-ago quarter.
Non-rolling chip drop and rolling chip volume were $748 million and $2.45 billion, respectively, compared with $567 million and $1.18 billion reported in the year-ago quarter.
The segment’s hotel RevPAR increased to $432 million from $407 million reported in the second quarter of 2023. Occupancy rates were 8.2% compared with the prior year’s reported value of 84.8%.
Sands Macao
Net revenues from Sands Macao were down to $79 million from the year-ago period’s value of $84 million. The downturn was mainly driven by the decline in casino revenues.
Casino revenues totaled $70 million compared with $76 million reported in the year-ago quarter.
Adjusted property EBITDA totaled $10 million, down from $15 million in the prior-year period.
Non-rolling chip drop and rolling chip volume were $401 million and $24 million, respectively, down from the year-ago quarter’s reported values of $406 million and $36 million.
The segment’s hotel RevPAR was $170 million, up from the year-ago figure of $160 million. Occupancy rates were 99% compared with 94.6% reported in the year-ago quarter.
Marina Bay Sands, Singapore
Net revenues from Marina Bay Sands totaled $1.02 billion, up from $925 million reported in the year-ago quarter. The upside was primarily driven by an increase in casino, rooms and convention, retail and other revenues.
Revenues from casino, and food and beverage totaled $706 million and $82 million, respectively, compared with the year-ago quarter’s reported values of $649 million and $84 million. Rooms, mall and convention, retail and other generated revenues were $124 million, $58 million and $46 million, respectively, compared with $104 million, $57 million and $31 million reported in the year-ago quarter.
Adjusted property EBITDA totaled $512 million, up from $432 million reported in the year-ago quarter.
Non-rolling chip drop and rolling chip volume were $2.04 billion and $6.08 billion, respectively, compared with the year-ago quarter’s reported values of $1.87 billion and $6.01 billion.
The segment’s hotel RevPAR was $759 million, up from $579 million in the second quarter of 2023. Occupancy rates were 95.3% compared with 97% reported in the year-ago quarter.
Operating Results
On a consolidated basis, adjusted property EBITDA totaled $1.07 billion in the second quarter compared with $973 million reported in the year-ago quarter.
Financials
As of Jun 30, 2024, Las Vegas Sands had unrestricted cash balances of $4.71 billion compared with $4.96 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $13.72 billion, slightly down sequentially from $13.94 billion.
In the reported quarter, capital expenditures totaled $285 million, comprising construction, development and maintenance activities of $131 million in Macao, $140 million at Marina Bay Sands, and $14 million in corporate, development and other.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -11.41% due to these changes.
VGM Scores
At this time, Las Vegas Sands has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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. Notably, Las Vegas Sands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.