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Las Vegas Sands (LVS) Q3 Earnings, Revenue Top; Stock Up

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Shares of  Las Vegas Sands Corp. (LVS - Free Report) rose over 3% in after-hour trading on Nov 3, after the company reported better-than-expected third-quarter 2016 results.

Adjusted earnings per share (EPS) of 72 surpassed the Zacks Consensus Estimate of 59 cents by over 22% and increased 9% year over year due to higher revenues and profits.
 

Quarterly net revenues of $2.97 billion topped the Zacks Consensus Estimate of $2.77 billion by 7.2% and inched up 2.6% year over year due to somewhat better performance in Macao.

The company stated that the operating environment in Macao continued to improve during the quarter, especially in the mass segment, as the market exhibited growth in total gaming revenue, overnight visitation, and length of stay. The Macao portfolio experienced strong visitation on the back of Las Vegas Sands’ market-leading hotel, retail and entertainment offerings.

The company is also positive on its subsidiary, Sands China Ltd.’s new resort, The Parisian Macao (opened on Sep 13), on the Cotai Strip in Macao. The resort should continue to attract visits by tourists and leisure gamblers and scoop up revenues.

On a consolidated basis, adjusted property EBITDA increased 8.6% year over year to $1.14 billion during the quarter owing to higher revenues.

Property Details: Asian Operations

The company's Asian business includes the following resorts:

The Venetian Macao

Net revenues increased 10.4% year over year to $772.5 million due to a 13.5% rise in casino revenues, an increase of 4.9% and 3.8%, respectively, in food and beverage and mall revenues, along with a 7% rise in convention, retail and other revenues. These were partially offset by a 12.7% drop in room revenues.

Adjusted property EBITDA was up 22.8% to $314.8 million in the reported quarter.

However, Non-Rolling Chip Drop declined 1.6% and Rolling Chip volume decreased a mere 0.1%.

Sands Cotai Central

Net revenues fell 5.9% year over year to $517.5 million owing to a 6.7% decline in casino revenues, a 3.8% fall in mall revenues and a 1.8% drop in convention retail and other revenues, offset to an extent by a 6.1% increase in room revenues and a 3.2% rise in food and beverage revenues.

Adjusted property EBITDA was $176.6 million, up 3.6%.

Interestingly, Non-Rolling Chip Drop increased 6.8% while Rolling Chip volume declined 39.3%.

The Parisian Macao

Net revenues were $68.6 million while adjusted property EBITDA came in at $19.2 million in the reported quarter.

Four Seasons Hotel Macau and Plaza Casino

Net revenues fell 4% to $161.2 million due to a 4.6% decline in casino revenues, an 11% drop in room revenues, a 1.5% fall in food and beverage revenues, a 2.2% decline in mall revenues and a 12.5% decrease in convention retail and other revenues.

However, adjusted property EBITDA increased 6.3% to $62.5 million.

Meanwhile, Non-Rolling Chip Drop fell 3.9% and Rolling Chip volume decreased 28.9%.

Sands Macau

Revenues declined 19.3% year over year to $167.4 million owing to a 19.1% decrease in casino revenues, an 18.3% fall in room revenues, a 22.1% drop in food and beverage revenues, and a 26.9% plunge in convention retail and other revenues.

Adjusted property EBITDA fell 10.6% to $45.7 million.

Non-Rolling Chip Drop and Rolling Chip volume decreased 11.7% and 31.2%, respectively, during the quarter.

Marina Bay Sands, Singapore

Net revenues increased 1.6% year over year to $762.6 million, owing to a 1.1% increase in casino revenues, a 10.4% rise in room revenues, an increase of 5.7% and 1.9%, respectively, in food and beverage and mall revenues, and a 15.4% surge in convention retail and other revenues.

Adjusted property EBITDA in the quarter was $390.7 million, up 0.3%.

Meanwhile, Non-Rolling Chip Drop fell 8.1%, while Rolling Chip volume decreased 36.5%.

Domestic Operations

Las Vegas Operations

Net revenues from Las Vegas operations, which comprise The Venetian Las Vegas and The Palazzo, were down 0.6% year over year to $383.2 million due to a 4.6% and 16.4% decline in casino and food and beverage revenues, respectively. However, the decrease was partially offset by an 8.3% increase in room revenues, and a 7.5% improvement in convention retail and other revenues.

Adjusted property EBITDA rose 6.9% year over year to $85.3 million.

However, Table Games Drop fell 29.1% in the quarter.

Sands Bethlehem, PA

Net revenues at Sands Bethlehem were $146.3 million in the quarter, up 1.6% year over year, attributable to a 1.2% increase in casino revenues, a 5.7% rise in food and beverage revenues, and a 1.9% improvement in convention, retail and other revenues. These were somewhat offset by a 2.5% decline in room revenues. Mall revenues were flat in the quarter.

Adjusted property EBITDA increased 1.6% year over year to $38.1 million in the quarter.

However, Table Games Drop were down 2.4%.

LAS VEGAS SANDS Price, Consensus and EPS Surprise

 

LAS VEGAS SANDS Price, Consensus and EPS Surprise | LAS VEGAS SANDS Quote

Zacks Rank & Stocks to Consider

Las Vegas Sands presently has a Zacks Rank #3 (Hold). Better-ranked stocks in the sector include Monarch Casino & Resort Inc. (MCRI - Free Report) , Vail Resorts Inc. (MTN - Free Report) and Pool Corp. (POOL - Free Report) . While Monarch Casino & Resort and Vail Resorts sport a Zacks Rank #1 (Strong Buy), Pool carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Monarch Casino & Resort’s full-year 2016 earnings climbed 7.9% over the last 60 days. Further, for 2016, EPS is expected to grow 14.3%.

Vail Resorts posted positive earnings surprises in three of the last four quarters, with an average beat of 2.22%. The Zacks Consensus Estimate for Vail Resorts’ fiscal 2017 earnings moved up 6.5% over the last 60 days.

Pool’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 189.93%. Further, for 2016, EPS is expected to grow 18.9%.

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