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Las Vegas Sands (LVS) Q3 Earnings and Revenues Lag Estimates
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Las Vegas Sands Corp. (LVS - Free Report) reported lower-than-expected results in third-quarter 2018. Earnings missed the Zacks Consensus Estimate for the second straight quarter and revenues lagged the same after beating in the trailing six quarters. The results did not lead to much movement in the stock. Meanwhile, the stock has declined 16.9% in a year’s time compared with the industry’s fall of 24.3%.
Adjusted earnings per share came in at 77 cents, flat year over year but below the consensus mark of 84 cents. Net revenues totaled $3.37 billion, missing the consensus mark of $3.41 billion but improving 6.7% on a year-over-year basis.
The quarterly results were primarily driven by increased revenues at casino, rooms and mall. Further, revenues from Macao operations were robust. Meanwhile, Las Vegas revenues declined in the quarter. At the moment, the company is focusing on expanding the Four Seasons Tower Suites Macao, St. Regis Tower Suites Macao and the Londoner Macao to enhance its resort portfolio.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts:
The Venetian Macao
Net revenues increased 22.1% year over year to $857 million on 22.2% rise in casino revenues, 31.8% growth in room revenues, 10.5% uptick in food and beverage revenues and 9.1% improvement in mall revenues. Revenues convention and retail and other revenues rose 45% each.
Adjusted property EBITDA was up 30.3% year over year to $344 million in the quarter under review.
Non-rolling chip drop increased 15% and rolling chip volume improved 7.6%.
Sands Cotai Central
Net revenues were up 15% year over year to $537 million driven by a 17.3% increase in casino revenues, 9% rise in room revenues, 26.7% improvement in mall revenues and 14.3% growth in convention, retail and other revenues. However, food and beverage revenues fell 3.8% from the year-ago level.
Adjusted property EBITDA was $188 million, up 22.1% year over year.
While non-rolling chip drop rose 14.4%, rolling chip volume fell 9.9%.
The Parisian Macao
Revenues came in at $389 million, showing a decrease of 5.4% year over year. The decline was due to a 5.9% fall in casino revenues, 11.8% drop in room revenues and 18.8% slump in mall revenues. However, food and beverage revenues increased 13.3%.
Adjusted property EBITDA fell 10.3% year over year to $122 million.
Non-rolling chip drop improved 4.5%, while rolling chip volume declined 25.8%.
The Plaza Macao and Four Seasons Hotel Macao
Net revenues rose 19.3% to $167 million on a 24.7% increase in casino revenues as well as 25% and 6.5% increase in room revenues and mall revenues, respectively. However, food and beverage revenues decreased 14.3%.
Adjusted property EBITDA increased 3.9% to $53 million.
Rolling chip volume increased 28.7% while non-rolling chip drop fell 3.7%.
Sands Macao
Revenues were up 12.7% year over year to $160 million owing to a 12.3% gain in casino revenues and a 200% rise in convention, retail and other revenues. However, room revenues declined 20%.
Adjusted property EBITDA remained flat at $41 million.
While rolling chip volume was up 164.6%, non-rolling chip drop increased 2.7%.
Marina Bay Sands, Singapore
Net revenues fell 2.9% year over year to $766 million due to an 8.7% decline in casino revenues. Nevertheless, Rooms revenues as well as convention, retail and other revenues rose 12.8% and 29.2%, respectively. Mall as well as food and beverage revenues also increased a respective 4.8% and 15.2%.
Adjusted property EBITDA in the quarter was $419 million, down 5.2%.
Both Non-rolling chip drop and rolling chip volume declined 1.2% and 24.9%, respectively.
Las Vegas Sands Corp. Price, Consensus and EPS Surprise
Net revenues from Las Vegas operations, which comprise The Venetian Las Vegas and The Palazzo including the Sands Expo and Convention Center, decreased 2.1% to $379 million owing to a 4.3% and 9.1% respective fall in casino revenues and food and beverage. Convention, retail and other revenues saw a 2.2% rise.
Adjusted property EBITDA in the quarter remained flat at $76 million.
Table games drop increased 26.4% and slot handle rose 5.2%.
Sands Bethlehem
Net revenues at Sands Bethlehem totaled $138 million, down 4.2% year over year due to a 4% decline in casino revenues and a 16.7% decrease in convention, retail and other revenues. Revenues from food and beverage, rooms and mall remained flat in the quarter.
Adjusted property EBITDA in the quarter fell 17.5% to $33 million.
Table games drop declined 1.7% while slot handle rose 0.7%.
Operating Results
On a consolidated basis, adjusted property EBITDA was up 6% year over year to $1.28 billion in the third quarter. The upside can be attributed to robust operating performance in Macao business due to a 13% increase in revenues, partially offset by weaker rolling chip volume in Singapore.
Adjusted net income increased 0.4% year over year to $571 million.
Balance Sheet
As of Sep 30, 2018, unrestricted cash balances were $4.77 billion. Total debt outstanding, including the current portion and net of deferred financing costs along with original issue discount, was $11.98 billion.
In the reported quarter, capital expenditures came in at $207 million. This was mainly owing to construction, development and maintenance activities of $131 million in Macao, $44 million at Marina Bay Sands, $26 million in Las Vegas and $6 million at Sands Bethlehem.
Quarterly dividend paid by the company was 75 cents per share, while it repurchased $300 million of common stock.
Boyd Gaming’s earnings growth rate for 2018 is projected at 39.81%.
Callaway Golf has an expected current-year earnings growth rate of 88.68%.
MCBC Holdings has an expected current-year earnings growth rate of 26.32%.
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Las Vegas Sands (LVS) Q3 Earnings and Revenues Lag Estimates
Las Vegas Sands Corp. (LVS - Free Report) reported lower-than-expected results in third-quarter 2018. Earnings missed the Zacks Consensus Estimate for the second straight quarter and revenues lagged the same after beating in the trailing six quarters. The results did not lead to much movement in the stock. Meanwhile, the stock has declined 16.9% in a year’s time compared with the industry’s fall of 24.3%.
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Adjusted earnings per share came in at 77 cents, flat year over year but below the consensus mark of 84 cents. Net revenues totaled $3.37 billion, missing the consensus mark of $3.41 billion but improving 6.7% on a year-over-year basis.
The quarterly results were primarily driven by increased revenues at casino, rooms and mall. Further, revenues from Macao operations were robust. Meanwhile, Las Vegas revenues declined in the quarter. At the moment, the company is focusing on expanding the Four Seasons Tower Suites Macao, St. Regis Tower Suites Macao and the Londoner Macao to enhance its resort portfolio.
Asian Operations
Las Vegas Sands’ Asia business includes the following resorts:
The Venetian Macao
Net revenues increased 22.1% year over year to $857 million on 22.2% rise in casino revenues, 31.8% growth in room revenues, 10.5% uptick in food and beverage revenues and 9.1% improvement in mall revenues. Revenues convention and retail and other revenues rose 45% each.
Adjusted property EBITDA was up 30.3% year over year to $344 million in the quarter under review.
Non-rolling chip drop increased 15% and rolling chip volume improved 7.6%.
Sands Cotai Central
Net revenues were up 15% year over year to $537 million driven by a 17.3% increase in casino revenues, 9% rise in room revenues, 26.7% improvement in mall revenues and 14.3% growth in convention, retail and other revenues. However, food and beverage revenues fell 3.8% from the year-ago level.
Adjusted property EBITDA was $188 million, up 22.1% year over year.
While non-rolling chip drop rose 14.4%, rolling chip volume fell 9.9%.
The Parisian Macao
Revenues came in at $389 million, showing a decrease of 5.4% year over year. The decline was due to a 5.9% fall in casino revenues, 11.8% drop in room revenues and 18.8% slump in mall revenues. However, food and beverage revenues increased 13.3%.
Adjusted property EBITDA fell 10.3% year over year to $122 million.
Non-rolling chip drop improved 4.5%, while rolling chip volume declined 25.8%.
The Plaza Macao and Four Seasons Hotel Macao
Net revenues rose 19.3% to $167 million on a 24.7% increase in casino revenues as well as 25% and 6.5% increase in room revenues and mall revenues, respectively. However, food and beverage revenues decreased 14.3%.
Adjusted property EBITDA increased 3.9% to $53 million.
Rolling chip volume increased 28.7% while non-rolling chip drop fell 3.7%.
Sands Macao
Revenues were up 12.7% year over year to $160 million owing to a 12.3% gain in casino revenues and a 200% rise in convention, retail and other revenues. However, room revenues declined 20%.
Adjusted property EBITDA remained flat at $41 million.
While rolling chip volume was up 164.6%, non-rolling chip drop increased 2.7%.
Marina Bay Sands, Singapore
Net revenues fell 2.9% year over year to $766 million due to an 8.7% decline in casino revenues. Nevertheless, Rooms revenues as well as convention, retail and other revenues rose 12.8% and 29.2%, respectively. Mall as well as food and beverage revenues also increased a respective 4.8% and 15.2%.
Adjusted property EBITDA in the quarter was $419 million, down 5.2%.
Both Non-rolling chip drop and rolling chip volume declined 1.2% and 24.9%, respectively.
Las Vegas Sands Corp. Price, Consensus and EPS Surprise
Las Vegas Sands Corp. Price, Consensus and EPS Surprise | Las Vegas Sands Corp. Quote
Domestic Operations
Las Vegas
Net revenues from Las Vegas operations, which comprise The Venetian Las Vegas and The Palazzo including the Sands Expo and Convention Center, decreased 2.1% to $379 million owing to a 4.3% and 9.1% respective fall in casino revenues and food and beverage. Convention, retail and other revenues saw a 2.2% rise.
Adjusted property EBITDA in the quarter remained flat at $76 million.
Table games drop increased 26.4% and slot handle rose 5.2%.
Sands Bethlehem
Net revenues at Sands Bethlehem totaled $138 million, down 4.2% year over year due to a 4% decline in casino revenues and a 16.7% decrease in convention, retail and other revenues. Revenues from food and beverage, rooms and mall remained flat in the quarter.
Adjusted property EBITDA in the quarter fell 17.5% to $33 million.
Table games drop declined 1.7% while slot handle rose 0.7%.
Operating Results
On a consolidated basis, adjusted property EBITDA was up 6% year over year to $1.28 billion in the third quarter. The upside can be attributed to robust operating performance in Macao business due to a 13% increase in revenues, partially offset by weaker rolling chip volume in Singapore.
Adjusted net income increased 0.4% year over year to $571 million.
Balance Sheet
As of Sep 30, 2018, unrestricted cash balances were $4.77 billion. Total debt outstanding, including the current portion and net of deferred financing costs along with original issue discount, was $11.98 billion.
In the reported quarter, capital expenditures came in at $207 million. This was mainly owing to construction, development and maintenance activities of $131 million in Macao, $44 million at Marina Bay Sands, $26 million in Las Vegas and $6 million at Sands Bethlehem.
Quarterly dividend paid by the company was 75 cents per share, while it repurchased $300 million of common stock.
Las Vegas Sands has a Zacks Rank #4 (Sell).
Key Picks
Better-ranked stocks in the Consumer Discretionary space include Boyd Gaming Corporation (BYD - Free Report) , Callaway Golf Company and MCBC Holdings, Inc. (MCFT - Free Report) a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boyd Gaming’s earnings growth rate for 2018 is projected at 39.81%.
Callaway Golf has an expected current-year earnings growth rate of 88.68%.
MCBC Holdings has an expected current-year earnings growth rate of 26.32%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>