Las Vegas Sands (LVS) Down 0.6% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Las Vegas Sands (LVS). Shares have lost about 0.6% in that time frame, underperforming the S&P 500.

– Zacks

Will the recent negative trend continue leading up to its next earnings release, or is Las Vegas Sands due for a breakout? 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 drivers.

Las Vegas Sands Misses Q3 Earnings & Revenues

Las Vegas Sands reported third-quarter 2021 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. While the top line missed the consensus mark for the third straight quarter, the bottom line lagged the same for the second consecutive quarter. However, both the metrics improved on a year-over-year basis. The company’s results in the quarter were impacted by the travel related restrictions in both Macau and Singapore.

Earnings & Revenue Discussion

During third-quarter 2021, the company reported an adjusted loss per share of 45 cents, wider than the Zacks Consensus Estimate of a loss of 25 cents. In the prior-year quarter, the company had reported an adjusted loss of 59 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $157 million compared with $134 million in the prior-year quarter.

Quarterly revenues of $857 million missed the consensus mark of $1,310 million. However, the figure improved from $446 million reported in the prior-year quarter driven by improved occupancy rates and RevPAR.
Asian Operations

Las Vegas Sands’ Asia business includes the following resorts:

The Venetian Macao

During the third quarter, net revenues from Venetian Macao were $253 million compared with $68 million in the prior-year quarter. The upside can primarily be attributed to a rise in casino, rooms, food and beverage and mall revenues.

During the quarter, revenues from casino, rooms, food and beverage and mall were $176 million, $18 million, $6 million and $49 million compared with $32 million, $3 million, $2 million and $28 million, respectively, in the prior-year quarter. Convention, Retail and Other revenues were $4 million compared with $3 million reported in the year-ago quarter. Adjusted property EBITDA during the third quarter totaled $40 million against ($78) million in the prior-year quarter. Both non-rolling chip drop and rolling chip volumes were $632 million and $781 million, compared with $118 million and $188 million, reported in the prior-year quarter.

During the quarter under review, the segment’s hotel RevPAR was $72 million compared with $15 million in the prior-year quarter. Occupancy rates came in at 48.4% compared with 7.6% in the prior-year quarter.

The Londoner Macao

During the third quarter, net revenues from The Londoner Macao amounted to $123 million compared with $22 million in the prior-year quarter. The upside was primarily driven by a rise in casino, rooms, food and beverage and mall revenues.

During the quarter, revenues from casino, food and beverage and mall totaled $80 million, $6 million and $13 million compared with $5 million, $3 million and $9 million, respectively, in the prior-year quarter. In the reported quarter, rooms revenues were $22 million compared with $2 million in the prior-year quarter. Convention, Retail and Other revenues amounted to $2 million compared with $3 million reported in the prior-year quarter. Adjusted property EBITDA in the reported quarter totaled ($33) million compared with ($71) million in the prior-year quarter. Non-rolling chip drop volumes were $388 million compared with $29 million in the prior-year quarter. Rolling chip drop volumes during the quarter were $1,266 million.

During the quarter, the segment’s hotel RevPAR was $60 million compared with $5 million reported in the prior-year quarter. Occupancy rates came in at 38.8% compared with 4% in the prior-year quarter.

The Parisian Macao

During the third quarter, net revenues from The Parisian Macao were $102 million compared with $40 million in the prior-year quarter. The upside was primarily driven by a rise in casino, rooms, food and beverage and mall revenues.

During the quarter, revenues from casino, rooms, food and beverage and mall totaled $75 million, $12 million, $4 million and $10 million compared with $26 million, $4 million, $3 million and $6 million, respectively, in the prior-year quarter.

Non-rolling chip drop volumes were $246 million compared with $44 million in the prior-year quarter. However, rolling chip drop volumes amounted to $175 million compared with $335 million in the year-ago quarter. During the quarter, the segment’s hotel RevPAR was $61 million compared with $17 million in the prior-year quarter. Occupancy rates came in at 52.5% compared with 12.7% in the prior-year quarter.

The Plaza Macao and Four Seasons Macao

During the third quarter, net revenues from The Plaza Macao and Four Seasons Macao were $111 million, compared with $25 million reported in the prior-year quarter. The upsurge can primarily be attributed to a rise in casino, rooms, food and beverage and mall revenues.

During the quarter, revenues from casino, rooms and mall were $44 million, $11 million, $52 million and $34 million compared with $10 million, $1 million and $13 million, respectively, in the prior-year quarter. Adjusted property EBITDA in the reported quarter totaled $42 million against ($15) million in the prior-year quarter. Non-rolling chip drop volumes were $269 million compared with $41 million in the prior-year quarter. However, rolling chip drop volumes amounted to $308 million compared with $397 million in the year-ago quarter.

In the quarter under review, the segment’s hotel RevPAR was $181 million compared with $23 million reported in the year-ago quarter. Meanwhile, occupancy rates came in at 41.3% compared with 8.7% in the prior-year quarter.

Sands Macao

During the third quarter, net revenues from Sands Macao were $20 million compared with $12 million in the prior-year quarter. The upside primarily came on the back of an improvement in casino revenues. In the quarter under review, casino revenues totaled $16 million compared with $11 million in the prior-year quarter.

Adjusted property EBITDA in the third quarter totaled ($21) million compared with ($26) million in the prior-year quarter. Both non-rolling chip drop and rolling chip volumes were $89 million and $137 million compared with $46 million and $129 million reported in the prior-year quarter.

During the quarter under review, the segment’s hotel RevPAR was $85 million compared with $23 million in the year-ago quarter. Occupancy rates came in at 63.2% compared with 14.5% in the prior-year quarter.

Marina Bay Sands, Singapore

During the third quarter, net revenues from Marina Bay Sands were $249 million compared with $281 million in the prior-year quarter. The downside was primarily due to a decline in casino revenues.

During the quarter under review, revenues from casino, rooms, food and beverage and mall totaled $142 million, $35 million, $21 million and $41 million compared with $197 million, $25 million, $22 million and $28 million, respectively, in the prior-year quarter. However, convention, retail and other revenues were $10 million compared with $9 million in the prior-year quarter.
Adjusted property EBITDA in the reported quarter totaled $15 million compared with $70 million reported in the year-ago quarter.

Both non-rolling chip drop and rolling chip volumes were $638 million and $459 million compared with $421 million and $1,477 million reported in the prior-year quarter.

In the quarter, the segment’s hotel RevPAR was $169 million compared with $143 million in the prior-year quarter. Meanwhile, occupancy rates came in at 71.7% compared with 55.5% in the prior-year quarter.

Domestic Operations

Las Vegas

During the third quarter, net revenues from Las Vegas operations were $399 million compared with $59 million in the prior-year quarter. The upside was primarily driven by a rise in casino, rooms and food and beverage revenues.
In the quarter under review, revenues from casino, rooms and food and beverage was $141 million, $142 million and $70 million compared with $59 million, $41 million and $23 million, respectively, in the prior-year quarter.

Adjusted property EBITDA in the reported quarter totaled $132 million against ($40) million reported in the year-ago quarter. Table games drop were up 3.5%, while slot handle rose 79.8% on a year-over-year basis. During the reported quarter, RevPAR was $221 million compared with $76 million in the prior-year quarter. Meanwhile, occupancy rates came in at 96.9% compared with 43.7% in the prior-year quarter.

Operating Results

On a consolidated basis, adjusted property EBITDA totaled $47 million in the second quarter against ($163) million reported in the prior-year quarter.

Balance Sheet

As of Sep 30, 2021, unrestricted cash balances amounted to $1.64 billion. Total debt outstanding (excluding finance leases) was $14.5 billion. In the reported quarter, capital expenditures totaled $192 million, thanks to construction, development and maintenance activities of $116 million in Macao and $52 million at Marina Bay Sands.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -5266.66% due to these changes.

VGM Scores

Currently, Las Vegas Sands has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. 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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