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Las Vegas Sands' Q3 Earnings & Revenues Lag Estimate, Down Y/Y

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Las Vegas Sands Corp. (LVS - Free Report) reported lower-than-expected third-quarter 2024 results, with earnings and net revenues missing the Zacks Consensus Estimate. Also, the metrics decreased on a year-over-year basis.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The quarterly results were impacted by a lower-than-expected hold in Singapore. Also, disruptions from ongoing development work at the Londoner in Macao added to the downside.

Nonetheless, the company continued to execute its strategic objectives in the quarter. The recovery in Macao progressed, supported by decades of investment aimed at enhancing business and leisure tourism.

In Singapore, Marina Bay Sands maintained strong financial and operational performance. The company's new suite offerings and improved services are positioned for growth as tourism spending in Asia increases.

LVS remains optimistic about achieving industry-leading growth in Macao and Singapore, driven by its ongoing capital investment programs in these markets.

Shares of LVS gained 2.4% in yesterday’s after-hours trading session, after the announcement of the result.

LVS’ Q3 Earnings & Revenues

Las Vegas Sands reported adjusted earnings per share (EPS) of 44 cents, which missed the Zacks Consensus Estimate of 56 cents by 21.4%. In the year-ago quarter, it had reported an EPS of 55 cents. Interest expense (net of amounts capitalized) totaled $179 million compared with $200 million reported in the year-ago 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-eps-surprise-chart | Las Vegas Sands Corp. Quote

Quarterly net revenues of $2.68 billion also lagged the consensus mark of $2.80 billion by 3.9% and decreased 4% year over year.

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 $692 million, down from $723 million in the year-ago quarter. The downside was due to a decrease in casino, rooms, food and beverage and convention, retail and other revenues. Our model expected the quarterly revenues for this metric to be $695.7 million.

Quarterly revenues from casino, rooms and mall were $554 million, $54 million and $59 million, respectively, compared with the year-ago quarter’s reported figures of $575 million, $55 million and $58 million. Convention, retail and other revenues were $10 million, down from $18 million reported a year ago. Food and beverage revenues were $15 million, down from $17 million in the year-ago quarter.

Adjusted property EBITDA totaled $267 million, down from $290 million reported in the third quarter of 2023. Our estimate for the metric was $269.4 million.

Non-rolling chip drop and rolling chip volumes were $2.25 billion and $1.13 billion, respectively, compared with the year-ago quarter’s reported figure of $2.31 billion and $953 million.

The segment’s hotel revenue per available room (RevPAR) was $202 million compared with $207 million reported in the year-ago period. Occupancy rates were 98.8%, up from the prior year’s reported value of 98%.

The Londoner Macao

Net revenues from The Londoner Macao amounted to $460 million, down from $518 million reported in the prior-year period. Decreased casino, rooms and food and beverage revenues caused the downside. We estimated the metric to be $514 million.

Revenues from casino, rooms and food and beverage totaled $338 million, $68 million and $21 million, respectively, compared with the year-ago quarter’s reported figure of $371 million, $97 million and $25 million. Mall revenues increased to $20 million from $17 million in the year-ago quarter. Quarterly revenues from convention, retail and other totaled $13 million, up from $8 million reported in the prior-year quarter.

Adjusted property EBITDA totaled $124 million, down from $167 million reported in the year-ago quarter. Our estimate for the metric was pegged at $144.9 million.

Non-rolling chip drop and rolling chip volume were $1.60 billion and $1.55 billion, respectively, down from the year-ago quarter’s reported figures of $1.74 billion and $1.56 billion.

The segment’s hotel RevPAR was $225 million compared with $181 million in the year-ago quarter. Occupancy rates were 97.7%, up from 95.3% reported in the third quarter of 2023.

The Parisian Macao

Net revenues from The Parisian Macao were $250 million, up from $244 million reported a year ago. The uptick was driven by improvements in casino and food and beverage revenues. We estimated the metric to be $245.2 million.

Revenues from casino, rooms and food and beverage were $189 million, $36 million and $17 million, respectively, compared with the year-ago quarter’s reported figures of $181 million, $37 million and $15 million. Mall revenues declined to $6 million from $7 million in the year-ago quarter. Quarterly revenues from convention, retail and other totaled $2 million, down from $4 million reported in the prior-year quarter.

Adjusted property EBITDA totaled $74 million, down from $81 million reported a year ago. Our estimate for the metric was $70.4 million.

Non-rolling chip drop totaled $1.05 billion, up from $789 million reported a year ago.

The segment’s hotel RevPAR decreased to $151 million from the prior year’s reported figure of $160 million. Occupancy rates were 98.5% compared with the prior year’s reported value of 97%.

The Plaza Macao and Four Seasons Macao

Net revenues from The Plaza Macao and Four Seasons Macao were $257 million, up from $192 million reported a year ago. The uptrend can be attributed to an increase in casino and rooms revenues. Our estimate for the metric was $222.1 million.

Casino, rooms and mall revenues were $182 million, $27 million and $40 million, respectively, compared with the year-ago quarter’s figures of $108 million, $24 million and $50 million. Revenues from food and beverage were flat year over year at $77 million.

Adjusted property EBITDA totaled $102 million, up from $71 million reported in the year-ago quarter. Our estimate was $65.2 million.

Non-rolling chip drop and rolling chip volume were $684 million and $2.62 billion, respectively, compared with $570 million and $2.07 billion reported in the year-ago quarter.

The segment’s hotel RevPAR increased to $442 million from $408 million reported in the third quarter of 2023. Occupancy rates were 93.2% compared with the prior year’s reported value of 86.4%.

Sands Macao

Net revenues from Sands Macao were down to $81 million from the year-ago period’s value of $83 million. The downturn was mainly due to the decline in casino revenues. Our projection for the metric was $90.8 million.

Casino revenues totaled $73 million compared with $75 million reported in the year-ago quarter.

Adjusted property EBITDA totaled $14 million, down from $17 million in the prior-year period. Our estimate was $12.9 million.

Non-rolling chip drop and rolling chip volume were $407 million and $26 million, respectively, compared with the year-ago quarter’s reported values of $414 million and $14 million.

The segment’s hotel RevPAR was $171 million, flat year-over-year. Occupancy rates were 99.4%, up from 98.7% reported in the year-ago quarter.

Marina Bay Sands, Singapore

Net revenues from Marina Bay Sands totaled $919 million, down from $1.02 billion reported in the year-ago quarter. The downside was primarily due to a decrease in casino and mall’s revenues. Our estimate for the metric was $1.11 billion.

Revenues from casino and mall totaled $600 million and $63 million, respectively, compared with the year-ago quarter’s reported values of $698 million and $68 million. Rooms and food and beverage generated revenues were $125 million and $89 million, respectively, flat year over year. Quarterly revenues from convention, retail and other totaled $42 million, up from $35 million reported in the prior-year quarter.

Adjusted property EBITDA totaled $406 million, down from $491 million reported in the year-ago quarter. We expected this metric to be $494.7 million.

Non-rolling chip drop and rolling chip volume were $2.13 billion and $6.56 billion, respectively, compared with the year-ago quarter’s reported values of $1.94 billion and $8.15 billion.

The segment’s hotel RevPAR was $855 million, up from $656 million in the third quarter of 2023. Occupancy rates were 94.7%, down from 96.3% reported in the year-ago quarter.

Operating Results of LVS

On a consolidated basis, adjusted property EBITDA totaled $991 million in the third quarter, down from $1.12 billion reported in the year-ago quarter.

LVS’ Financials

As of Sept. 30, 2024, Las Vegas Sands had unrestricted cash balances of $4.21 billion compared with $4.71 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $13.88 billion, up sequentially from $13.72 billion.

In the reported quarter, capital expenditures totaled $539 million, comprising construction, development and maintenance activities of $313 million in Macao and $215 million at Marina Bay Sands.

LVS’ Zacks Rank

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

Stocks to Consider

Some better-ranked stocks in the Zacks Consumer Discretionary sector are Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , Carnival Corporation & plc (CCL - Free Report) and Cinemark Holdings, Inc. (CNK - Free Report) . NCLH & CCL each sports a Zacks Rank #1 (Strong Buy), whereas CNK carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Norwegian Cruise Line has a trailing four-quarter earnings surprise of 5.7%, on average. The stock has rallied 70.6% in the past year. The Zacks Consensus Estimate for NCLH’s 2024 sales and EPS implies growth of 9.9% and 127.1%, respectively, from the year-ago levels.

Carnival has a trailing four-quarter earnings surprise of 318.1%, on average. The stock has surged 86.3% in the past year. The Zacks Consensus Estimate for CCL’s 2025 sales and EPS indicates an increase of 3.5% and 26.7%, respectively, from the year-ago levels.

Cinemark Holdings has a trailing four-quarter earnings surprise of 145.9%, on average. The stock has increased 83% in the past year. The Zacks Consensus Estimate for CNK’s 2025 sales and EPS indicates an increase of 11.4% and 29.5%, respectively, from the year-ago levels.

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