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Las Vegas Sands (LVS) Up 3.6% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Las Vegas Sands (LVS). Shares have added about 3.6% in that time frame, outperforming 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 Q4 Earnings & Revenues Top Estimates

Las Vegas Sands reported decent fourth-quarter 2021 results, with earnings surpassing the Zacks Consensus Estimate and increasing year over year. Revenues during the quarter beat the consensus mark but declined on a year-over-year basis.

Robert G. Goldstein, chairman and CEO, stated, "We remain confident in the eventual recovery in travel and tourism spending across our markets and enthusiastic about the opportunity to welcome more guests back to our properties in 2022 and the years ahead.”

Earnings & Revenue Discussion

During fourth-quarter 2021, the company reported an adjusted loss per share of 22 cents, narrower than the Zacks Consensus Estimate of a loss of 23 cents. In the prior-year quarter, the company had reported an adjusted loss of 27 cents per share. During the quarter under review, interest expenses (net of amounts capitalized) amounted to $152 million compared with $147 million in the prior-year quarter.

Quarterly revenues of $1,008 million beat the consensus mark of $1,006 million. However, the figure declined 0.7% from $1,015 million reported in the prior-year quarter.

Asian Operations

Las Vegas Sands’ Asia business includes the following resorts:

The Venetian Macao

During the fourth quarter, net revenues from Venetian Macao were $272 million compared with $327 million reported in the prior-year quarter. The downside was primarily caused by a decline in casino, rooms, food and beverage as well as convention, retail and other revenues.

During the quarter, revenues from casino, rooms, food and beverage were $195 million, $16 million, and $5 million compared with $243 million, $21 million, and $6 million, respectively, in the prior-year quarter. Convention, Retail and Other revenues were $5 million compared with $6 million reported in the year-ago quarter. Adjusted property EBITDA during the fourth quarter totaled $67 million compared with $73 million reported in the prior-year quarter.

Non-rolling chip drop and rolling chip volumes were $695 million and $890 million, respectively, compared with $975 million and $1,209 million reported in the prior-year quarter. During the quarter under review, the segment’s hotel RevPAR was $69 million compared with $82 million in the prior-year quarter. Occupancy rates came in at 44.2% compared with 49.3% in the prior-year quarter.

The Londoner Macao

During the fourth quarter, net revenues from The Londoner Macao amounted to $139 million compared with $95 million in the prior-year quarter. The upside was primarily driven by a rise in casino, rooms, food and beverage as well as convention, retail and other revenues.

During the quarter, revenues from casino and food and beverage totaled $92 million and $8 million compared with $63 million and $5 million, respectively, reported in the prior-year quarter. In the reported quarter, rooms revenues were $21 million compared with $13 million reported in the prior-year quarter. Convention, Retail and Other revenues amounted to $5 million compared with $1 million reported in the prior-year quarter. Adjusted property EBITDA in the reported quarter totaled ($23) million compared with ($34) million in the prior-year quarter.

Non-rolling chip drop volumes were $408 million compared with $291 million in the prior-year quarter. Rolling chip drop volumes during the quarter were $759 million. During the quarter, the segment’s hotel RevPAR was $69 million compared with $34 million reported in the prior-year quarter. Occupancy rates came in at 41.5% compared with 22.2% in the prior-year quarter.

The Parisian Macao

During the fourth quarter, net revenues from The Parisian Macao were $67 million compared with $101 million reported in the prior-year quarter. The downside was primarily due to a decline in casino, rooms, food and beverage and mall revenues. During the quarter, revenues from casino, rooms, food and beverage and mall totaled $41 million, $13 million, $4 million and $9 million compared with $69 million, $15 million, $5 million and $11 million, respectively, in the prior-year quarter.
 
Non-rolling chip drop volumes were $242 million compared with $404 million in the prior-year quarter. Meanwhile, rolling chip drop volumes amounted to $181 million compared with $534 million in the year-ago quarter. The segment’s hotel RevPAR was $60 million compared with $66 million in the prior-year quarter. Occupancy rates came in at 50.8% compared with 50% in the prior-year quarter.

The Plaza Macao and Four Seasons Macao

During the fourth quarter, net revenues from The Plaza Macao and Four Seasons Macao were $140 million compared with $114 million reported in the prior-year quarter. The upside can be attributed to a rise in casino and mall revenues. Revenues from casino and mall were $65 million and $59 million compared with $58 million and $40 million, respectively, in the prior-year quarter. Adjusted property EBITDA in the reported quarter totaled $63 million compared with $38 million reported million in the prior-year quarter.

Both non-rolling chip drop and rolling chip volumes were $265 million and $386 million compared with $274 million and $1,070 million reported in the prior-year quarter. In the quarter under review, the segment’s hotel RevPAR was $192 million compared with $189 million reported in the year-ago quarter. Meanwhile, occupancy rates came in at 43.9% compared with 42% in the prior-year quarter.

Sands Macao

During the fourth quarter, net revenues from Sands Macao were $25 million compared with $32 million in the prior-year quarter. The downside was primarily due to a decline in casino revenues. In the quarter under review, casino revenues totaled $21 million compared with $27 million in the prior-year quarter.  Adjusted property EBITDA in the fourth quarter totaled ($17) million compared with ($18) million in the prior-year quarter.

Non-rolling chip drop and rolling chip volumes were $91 million and $120 million, respectively, compared with $127 million and $506 million reported in the prior-year quarter. During the quarter under review, the segment’s hotel RevPAR was $93 million compared with $98 million in the year-ago quarter. Occupancy rates came in at 67% compared with 69.6% in the prior-year quarter.

Marina Bay Sands, Singapore

During the fourth quarter, net revenues from Marina Bay Sands totaled $368 million compared with $345 million in the prior-year quarter. The upside was driven by a rise in casino, rooms, mall, convention, retail and other revenues.
During the quarter under review, revenues from casinos, rooms, and malls totaled $237 million, $40 million and $49 million compared with $229 million, $36 million and $39 million, respectively, in the prior-year quarter. Convention, Retail and Other revenues amounted to $14 million compared with $9 million reported in the prior-year quarter. However, food and beverage revenues were $28 million compared with $32 million in the prior-year quarter.

Adjusted property EBITDA in the reported quarter totaled $177 million compared with $144 million reported in the year-ago quarter.

Non-rolling chip drop and rolling chip volumes were $814 million and $1,318 million, respectively, compared with $556 million and $1,257 million reported in the prior-year quarter. In the quarter under review, the segment’s hotel RevPAR was $205 million compared with $158 million in the prior-year quarter. Occupancy rates came in at 79.1% compared with 69% in the prior-year quarter.

Domestic Operations

Las Vegas

During the fourth quarter, net revenues from Las Vegas operations were $443 million compared with $131 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 were $139 million, $160 million and $90 million compared with $53 million, $41 million and $22 million, respectively, in the prior-year quarter.

Adjusted property EBITDA in the reported quarter totaled $154 million against ($50) million reported in the year-ago quarter. Table games drop were up 70.6%, while slot handle rose 101.8% on a year-over-year basis. RevPAR was $247 million compared with $81 million in the prior-year quarter. Meanwhile, occupancy rates came in at 100.3% compared with 43.9% in the prior-year quarter.

Operating Results

On a consolidated basis, adjusted property EBITDA totaled $251 million in the fourth quarter compared with $191 million reported in the prior-year quarter.

Balance Sheet

As of Dec 31, 2021, unrestricted cash balances amounted to $1.85 billion compared with $1.64 billion in the previous quarter. Total debt outstanding (excluding finance leases) was $14.77 billion compared with $14.50 billion as of Sep 30, 2021. In the reported quarter, capital expenditures totaled $188 million, thanks to construction, development and maintenance activities of $140 million in Macao and $46 million at Marina Bay Sands.

2021 Highlights

Net revenues in 2021 came in at $4,234 million compared with $2,940 million in 2020. Operating loss in 2021 came in at $689 million against an operating income of $1,393 million in 2020. In 2021, diluted loss per share came in at ($1.18) per share compared with ($1.80) reported in the previous year.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -152.12% due to these changes.

VGM Scores

Currently, Las Vegas Sands has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

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