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Las Vegas Sands (LVS) to Post Q2 Earnings: What's in Store?

Zacks Equity Research

Las Vegas Sands Corp. LVS is slated to release second-quarter 2019 financial numbers on Jul 24, after market close. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 7.1%. However, the bottom line lagged the consensus mark in three of the trailing four quarters, the average miss being 4.8%.

Q2 Expectations

The Zacks Consensus Estimate for second-quarter earnings is pegged at 80 cents, higher than 74 cents reported in the year-ago quarter. Over the past 90 days, the company’s earnings estimates have remained stable. For quarterly revenues, the consensus mark stands at nearly $3,388 million, indicating a 2.6% increase from the prior-year quarter reported figure.
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 second quarter are likely to be driven by robust performance of the Las Vegas operations, Marine Bay Sands, Sand Cotai Central and Venetian Macao segments. However, Sands Macao is likely to disappoint investors.

For Las Vegas operations, the consensus estimate for second-quarter revenues is pegged at $435 million, suggesting 8.2% growth from the year-earlier quarter figure. Moreover, the company’s Marine Bay Sands segment’s is likely to bounce back after reporting dismal results over the past few quarters. For this segment, the consensus mark is pegged at $738 million, indicating a 4.7% improvement from the prior-year reported figure.

The Zacks Consensus Estimate for revenues at the Sands Cotai Central segment stands at $514 million, implying a 1% gain from the year-ago reported number. Additionally, the Venetian Macao segment’s revenues are likely to witness 6.3% growth year over year to $882 million.

However, Sands Macao is likely to witness a 9.4% decline in revenues. 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. price-eps-surprise | Las Vegas Sands Corp. Quote

What Does the Zacks Model Unveil?

Our proven model shows that Las Vegas Sands is likely to beat earnings estimates in second-quarter 2019. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. 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 +0.41% and a Zacks Rank #3.

Key Picks

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

Melco Resorts & Entertainment Limited MLCO has an Earnings ESP of +27.12% and a Zacks Rank of 2.

Wynn Resorts, Limited WYNN has an Earnings ESP of +2.65% and a Zacks Rank #3.

The Stars Group Inc. TSG has an Earnings ESP of +3.23% and a Zacks Rank #3.

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