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Why Is Las Vegas Sands (LVS) Up 1.6% Since Last Earnings Report?

A month has gone by since the last earnings report for Las Vegas Sands (LVS). Shares have added about 1.6% in that time frame, underperforming 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 Q1 Earnings & Revenues Beat, Rise Y/Y

Las Vegas Sands reported impressive first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate and increasing on a year-over-year basis.

The quarterly results reflected solid growth in Macao and Singapore. The company witnessed ongoing recovery in travel and progress in tourism spending. Singapore’s Marina Bay Sands demonstrated a record financial and operational performance. The introduction of new suite options and improved services positions the company well for enhanced airlift capacity and continuous recovery in travel and tourism spending, especially from China and the broader region.

Given the improving market backdrop, LVS is optimistic about its strategic investments aimed at delivering improved services to its customers and enhancing its growth prospects.

Q1 Earnings & Revenues

During first-quarter 2024, Las Vegas Sands reported adjusted earnings per share (EPS) of 75 cents, topping the Zacks Consensus Estimate of 62 cents by 21%. In the year-ago quarter, it had reported an EPS of 28 cents per share. Interest expenses (net of amounts capitalized) totaled $182 million compared with $218 million reported in the year-ago quarter.

Quarterly revenues of $2.96 billion surpassed the consensus mark of $2.94 billion by 0.6%. The reported figure increased 39.6% from $2.12 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 $771 million compared with $558 million in the year-ago quarter. The upside was driven by a rise in casino, rooms, food and beverage, and mall revenues.

Quarterly revenues from casinos, rooms and malls were $638 million, $52 million and $54 million, respectively, compared with the year-ago quarter’s reported figures of $446 million, $39 million and $51 million. Convention, retail and other revenues were $10 million compared with $9 million reported a year ago. Food and beverage revenues were $17 million compared with $13 million in the last year quarter.

Adjusted property EBITDA totaled $314 million compared with $210 million in first-quarter 2023.

Non-rolling chip drop and rolling chip volumes were $2.41 billion and $1.04 billion, respectively, compared with the year-ago quarter’s reported figure of $1.77 billion and $1.25 billion, respectively.

The segment’s hotel revenue per available room (RevPAR) was $198 million compared with $177 million reported in the year-ago period. Occupancy rates were 97.7% compared with the prior year’s reported value of 85.7%.

The Londoner Macao

Net revenues from The Londoner Macao amounted to $562 million compared with $283 million reported in the prior-year period. The upside was backed by an increase in casinos, rooms, and food and beverage revenues.

Revenues from casinos, rooms and food and beverage totaled $419 million, $89 million and $27 million, respectively, compared with the year-ago quarter’s reported figure of $198 million, $55 million and $14 million. Mall revenues increased to $16 million from $14 million in the year-ago quarter. Quarterly revenues from convention, retail and other totaled $11 million, up from $2 million reported in the prior year.

Adjusted property EBITDA totaled $172 million compared with $56 million reported a year ago.

Non-rolling chip drop and rolling chip volumes were $1.92 billion and $1.88 billion, respectively, compared with the year-ago quarter’s reported figures of $899 million and $1.45 billion.

The segment’s hotel RevPAR was $182 million compared with $108 million in the year-ago quarter. Occupancy rates were 96.5% compared with 46.7% reported in the first quarter of 2023.

The Parisian Macao

Net revenues from The Parisian Macao were $230 million, up from $174 million reported a year ago. The uptick was primarily due to an improvement in casino, rooms and food and beverage revenues.

Revenues from casinos, rooms, and food and beverage were $173 million, $34 million and $14 million, respectively, compared with the year-ago quarter’s reported figures of $128 million, $28 million and $9 million.

Adjusted property EBITDA totaled $71 million, up from $46 million reported a year ago.

Non-rolling chip drop was $805 million compared with $584 million reported a year ago. Rolling chip volume was $16 million, down from $48 million reported in first-quarter 2023.

The segment’s hotel RevPAR increased to $148 million from the prior year’s reported figure of $121 million. Occupancy rates were 95.4% compared with the prior year’s reported value of 77.8%.

The Plaza Macao and Four Seasons Macao

Net revenues from The Plaza Macao and Four Seasons Macao were $142 million, down from $172 million reported a year ago. The downtrend can be attributed to a decline in casino revenues.

Casino, rooms and mall revenues were $70 million, $25 million and $38 million, respectively, compared with the year-ago quarter’s figures of $109 million, $20 million and $36 million.

Adjusted property EBITDA totaled $36 million compared with $75 million reported in the year-ago quarter.

Non-rolling chip drop and rolling chip volumes were $593 million and $2.5 billion, respectively, compared with $426 million and $1.23 billion reported in the year-ago quarter.

The segment’s hotel RevPAR was $412 million compared with $351 million reported in the first quarter of 2023. Occupancy rates were 85.4% compared with the prior year’s reported value of 66.4%.

Sands Macao

Net revenues from Sands Macao were $76 million compared with the year-ago period’s value of $74 million. This was mainly due to a rise in casino revenues. Casino revenues totaled $69 million compared with $67 million reported in the year-ago quarter.

Adjusted property EBITDA totaled $12 million, up from $10 million in the prior-year period.

Non-rolling chip drop and rolling chip volumes were $399 million and $11 million, respectively, compared with the year-ago quarter’s reported values of $346 million and $30 million.

The segment’s hotel RevPAR was $173 million, up from the year-ago figure of $151 million. Occupancy rates were 98.5% compared with 91% reported in the year-ago quarter.

Marina Bay Sands, Singapore

Net revenues from Marina Bay Sands totaled $1.16 billion, up from $848 million reported in the year-ago quarter. The upside was primarily driven by an increase in casino, rooms, food and beverage, and mall revenues.

Revenues from casinos, and food and beverage totaled $859 million and $81 million, up from the year-ago quarter’s reported values of $593 million and $79 million, respectively. Rooms, malls, and convention, retail and other generated revenues were $126 million, $59 million and $33 million, respectively, compared with $97 million, $53 million and $26 million reported in the year-ago quarter.

Adjusted property EBITDA totaled $597 million compared with $394 million reported in the year-ago quarter.

Non-rolling chip drop and rolling chip volumes were $2.16 billion and $8.24 billion, respectively, compared with the year-ago quarter’s reported values of $1.68 billion and $7.08 billion.

The segment’s hotel RevPAR was $677 million compared with $580 million in the first quarter of 2023. Occupancy rates were 95% compared with 97.6% reported in the year-ago quarter.

Operating Results

On a consolidated basis, adjusted property EBITDA totaled $1.21 billion in first-quarter 2024 compared with $792 million reported in the year-ago quarter.

Balance Sheet

As of Mar 31, 2024, Las Vegas Sands had unrestricted cash balances of $4.96 billion compared with $5.11 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $13.94 billion, down sequentially from $14.01 billion.

In the reported quarter, capital expenditures totaled $196 million, thanks to construction, development and maintenance activities of $90 million in Macao, $99 million at Marina Bay Sands and $7 million in corporate, development and other.

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How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -5.57% due to these changes.

VGM Scores

Currently, Las Vegas Sands has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second 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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