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Factors Likely to Shape Las Vegas Sands' (LVS) Q1 Earnings

Zacks Equity Research

Las Vegas Sands Corp. LVS is slated to release first-quarter 2019 financial numbers on Apr 17, after market close. In the last reported quarter, the company’s earnings have missed the Zacks Consensus Estimate by 10.5%.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter earnings is pegged at 85 cents, lower than $1.04 reported in the year-ago quarter. Of late, the company’s earnings estimates have been stable. For quarterly revenues, the consensus mark stands at nearly $3,505 million, reflecting a 2.3% decline from the prior-year quarter.
Let’s delve deeper to find out how the company’s top and bottom line will shape up this earnings season.

Factors at Play

We believe Las Vegas Sands’ results in the first quarter is likely to be impacted by dismal performance of the company’s Las Vegas operations, Marine Bay Sands and Sand Cotai Central segments. However, the Venetian Macao segment is likely to impress.

For Las Vegas operations, the consensus estimate for first-quarter revenues is pegged at $461 million, mirroring a 3.4% decline year over year. Moreover, the company’s Marine Bay Sands segment’s dismal run is likely to continue in the quarter to be reported. For this segment, the consensus mark is pegged at $729 million, down 16.4% year over year. The Zacks Consensus Estimate for revenues at the Sands Cotai Central segment stands at $522 million, reflecting a 4.9% decline year over year. However, the Venetian Macao segment’s revenues are likely to witness 1.5% growth year over year to $881 million.

The slowdown in China and the trade war between Beijing and Washington has impacted casino operators in Macau. Further, speculations over another crackdown on capital outflows by China have kept investors on the edge. Flagging China property price has impacted the high-end VIP segment.

Las Vegas Sands Corp. Price and EPS Surprise

Las Vegas Sands Corp. Price and EPS Surprise | Las Vegas Sands Corp. Quote

Our Model Suggests a Beat

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Las Vegas Sands has an Earnings ESP of +4.65% and a Zacks Rank #2, a combination that suggests that the company is likely to beat estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Key Picks

Here are some companies from the same sector that are poised for an earnings beat in the upcoming releases:

PlayAGS, Inc. AGS has an Earnings ESP of +50.00% and a Zacks Rank of 3.

Wynn Resorts, Limited WYNN has an Earnings ESP of +2.54% and a Zacks Rank #2.

International Game Technology PLC IGT has an Earnings ESP of +28.05% and a Zacks Rank #3.

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