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Las Vegas Sands (LVS) Q4 Earnings & Revenues Beat Estimates

Zacks Equity Research

Las Vegas Sands Corp. LVS reported fourth-quarter 2019 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate after missing the same in the trailing two quarters. Moreover, both the metrics also improved year over year.

Adjusted earnings came in at 88 cents per share, which surpassed the Zacks Consensus Estimate of 79 cents and also improved 14.3% year over year. The company’s earnings benefited from non-recurring non-cash income tax items owing to the implementation of U.S. tax reform in 2018. Earnings also benefited from decline in interest expenses. In the reported quarter, interest expense, net of amounts capitalized, improved to $134 million compared with $138 million in the year-ago quarter.

Net revenues totaled $3,509 million, which beat the consensus mark of $3,379 million and increased 1% on a year-over-year basis. The top line was driven by rise in casino, food and beverage and mall revenues.

Asian Operations

Las Vegas Sands’ Asia business includes the following resorts:

The Venetian Macao

Net revenues declined 1.2% year over year to $908 million. Casino and rooms revenues came in at $748 and $54 million, up 0.1% and down 3.6%, respectively. Food and beverage, and convention, retail and other revenues declined 10.5% and 43.8% year over year to $17 million and $18 million, respectively. Mall revenues improved 9.2% year over year to $71 million.

Adjusted property EBITDA were up 3.7% year over year to $368 million in the quarter under review.

While non-rolling chip drop declined 3.3%, rolling chip volume declined 37.4%.

Las Vegas Sands Corp. Price, Consensus and EPS Surprise

 

Las Vegas Sands Corp. Price, Consensus and EPS Surprise

Las Vegas Sands Corp. price-consensus-eps-surprise-chart | Las Vegas Sands Corp. Quote

Sands Cotai Central

Net revenues decreased 9.5% year over year to $505 million owing to a decline 9.3%, 9.3% and 8% in casino revenues, rooms revenues, and food and beverage, respectively. Moreover, mall, and convention, retail and other revenues also declined 4.8% and 37.5% year over year, respectively.

Adjusted property EBITDA was $180 million, down 7.2% year over year.

Both non-rolling chip drop and rolling chip volume declined 1.7% and 63.8%, respectively.

The Parisian Macao

Revenues amounted to $401 million, reflecting year-over-year decrease of 3.1%. The downside can primarily be attributed to a decline of 3.2% in casino revenues. However, rooms and food and beverage revenues were flat, respectively.

Adjusted property EBITDA decreased 7.6% year over year to $122 million.

Non-rolling chip drop were down 1%, while rolling chip volume declined 13.2%.

The Plaza Macao and Four Seasons Hotel Macao

Net revenues surged 40.6% to $246 million driven by an improvement of 56.5% and 10% in casino and rooms, respectively. Food and beverage revenues were flat in the reported quarter.

Adjusted property EBITDA jumped 59.4% to $102 million.

While rolling chip volume decreased 10%, non-rolling chip drop advanced 25.5%.

Sands Macao

Revenues were down 3.8% year over year to $150 million owing to 4.9% decrease in casino revenues.

Adjusted property EBITDA rose 5.3% to $40 million.

While rolling chip volume declined 35.8%, non-rolling chip drop declined 2.9%.

Marina Bay Sands, Singapore

Net revenues rose 17.5% year over year to $853 million due to an improvement of 20.4%, 6.4%, 25.5%, 5.9% and 7.7% in casino revenues, rooms, food and beverage, mall, and convention, retail and other revenues, respectively.

Adjusted property EBITDA of $457 million in the fourth quarter increased 26.2%.

While non-rolling chip drop decreased 2.2%, rolling chip volume improved 16%.

Domestic Operations

Las Vegas


Net revenues from Las Vegas operations, which comprise The Venetian Las Vegas and The Palazzo including the Sands Expo and Convention Center, improved 12% to $475 million on a rise of 30.3% and 18.8% in casino, and food and beverage revenues, respectively. Rooms revenues also increased 4.1%. Moreover, convention, retail and other revenues increased 1.9% year over year.

Adjusted property EBITDA in the reported quarter totaled $120 million, surging 20% on a year-over-year basis.

Table games drop were up 2.7%, while slot handle advanced 5.9%.

Operating Results

On a consolidated basis, adjusted property EBITDA came in at $1.38 billion in the fourth quarter, up 9.1% year over year. Las Vegas operating properties, Sands Macao and The Plaza Macao and Four Seasons Hotel Macao and Venetian Macao adjusted EBITDA improved in the quarter, while Sands Cotai Central and The Parisian Macao witnessed decline in adjusted EBITDA.

Balance Sheet

As of Dec 31, 2019, unrestricted cash balances amounted to $4.23 billion. Total debt outstanding (excluding finance leases) totaled $12.48 billion.

In the reported quarter, capital expenditures totaled $460 million. This can primarily be attributed to construction, development and maintenance activities of $352 million in Macao, $61 million at Marina Bay Sands and $47 million in Las Vegas.

Quarterly dividend of 77 cents per share was paid out by the company, while it repurchased $300 million of its common stock.

Las Vegas Sands has a Zacks Rank #3 (Hold).

Zacks Rank & Key Picks

Las Vegas Sands has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Red Rock Resorts, Inc. RRR, Caesars Entertainment Corporation CZR and Churchill Downs Incorporated CHDN. Red Rock Resorts sports a Zacks Rank #1 (Strong Buy), while Caesars Entertainment and Churchill Downs carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Red Rock Resorts have gained 16.1% in the past three months.

Caesars Entertainment and Churchill Downs have an impressive long-term earnings growth rate of 10% and 20%, respectively.

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