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Las Vegas Sands (LVS) Earnings Beat, Revenues Miss in Q1

Las Vegas Sands Corp. LVS reported mixed first-quarter 2017 results wherein earnings beat the Zacks Consensus Estimate, while revenues missed the same. Shares were down over 1% in after-hour trading on Apr 26, following the company’s results.

Adjusted earnings per share (EPS) of 66 cents surpassed the Zacks Consensus Estimate of 62 cents by 6.45% and increased 40.4% year over year owing to higher revenues.
 

 

Quarterly net revenues of $3.11 billion came slightly below the Zacks Consensus Estimate of $3.12 billion but increased 14.3% year over year primarily on the back of solid performance at its Las Vegas properties, somewhat offset by mostly weak results in Macao.

Nonetheless, Las Vegas Sands stated that the operating environment in Macao continued to improve during the quarter. According to the company, its industry-leading Cotai Strip property portfolio in Macao buoyed by the addition of The Parisian Macao experienced strong visitation and higher hotel occupancy rates.

We note that management is confident about Las Vegas Sands’ Cotai Strip portfolio of properties. It expects these properties to continue providing the economic benefits of diversification to Macao, help lure greater numbers of business and leisure travelers, and provide both Macao and the company with a superior platform for growth in the future.

On a consolidated basis, adjusted property earnings before interest, taxes, depreciation and amortization (EBITDA) was up 24.9% year over year to $1.15 billion during the quarter, owing to higher revenues.

Property Details: Asian Operations

The company's Asian business includes the following resorts:

The Venetian Macao

Net revenue declined 1.1% year over year to $741 million, due to a 1.4% fall in casino revenues, a 4.3% decline in rooms revenues and a 9.5% drop in food and beverage revenues, offset to an extent by a 4.1% increase in mall revenues and a 21.4% surge in convention, retail and other revenues.

Adjusted property EBITDA was up 7.8% year over year to $289 million in the reported quarter.

However, Non-Rolling Chip Drop declined 2.4% and Rolling Chip volume plunged 25.2%.

Sands Cotai Central

Net revenue fell 11.9% year over year to $467 million, owing to a 15% decline in casino revenues, a 1.5% drop in rooms revenues along with a 3.8% decrease in food and beverage revenues, offset by a 26.7% rise in mall revenues and a 20% increase in convention, retail and other revenues.

Adjusted property EBITDA was $143 million, down 12.3% year over year.

Moreover, Non-Rolling Chip Drop and Rolling Chip volume declined 2.3% and 19.5%, respectively.

The Parisian Macao

Revenues dipped 7.6% year over year to $318 million owing to a 7.3% fall in casino revenues, a decrease of 3.3%, 5.9% and 5.6% in rooms, food and beverage, and mall revenues, respectively, along with a 16.7% drop in convention, retail and other revenues.

Adjusted property EBITDA declined 13.7% to $82 million.

However, Non-Rolling Chip Drop and Rolling Chip volume witnessed an increase of 9.8% and 12.3%, respectively.

Four Seasons Hotel Macao and Plaza Casino

Net revenue declined 3.4% to $143 million, due to a 3.6% decrease in casino revenues. Meanwhile, rooms, food and beverage, mall revenues along with convention retail and other revenues remained flat.

Nonetheless, adjusted property EBITDA increased 6.3% to $51 million.

While Non-Rolling Chip Drop inched up 1%, Rolling Chip volume plunged 30.2%.

Sands Macao

Revenues increased 4% year over year to $182 million, owing to a 3.5% increase in casino revenues. Notably, rooms, food and beverage, mall revenues along with convention retail and other revenues remained flat during the reported quarter.

Adjusted property EBITDA surged 74.2% to $54 million.

However, Non-Rolling Chip Drop and Rolling Chip volume decreased 12.4% and 14.6%, respectively.

Marina Bay Sands, Singapore

Net revenue rose 15.9% year over year to $700 million, owing to a 21.4% increase in casino revenues, a 5.6% rise in rooms revenues and a 14.3% improvement in convention retail and other revenues. While food and beverage revenues remained flat, mall revenues fell 2.6%.

Adjusted property EBITDA in the quarter was $365 million, up 32.7%.

Non-Rolling Chip Drop fell 4% while Rolling Chip volume decreased 7.4%.

Domestic Operations

Las Vegas Operations

Net revenue from Las Vegas operations, which comprise The Venetian Las Vegas and The Palazzo, were up a solid 12.7% year over year to $434 million due to a 18.3% rise in casino revenues, an increase of 6.1% and 16.2%, respectively, in rooms revenues, and food and beverage revenues, along with a 7.1% improvement in convention retail and other revenues.
 
Adjusted property EBITDA rose 40.2% year over year to $122 million.

However, Table Games Drop fell 10.5% in the quarter.

Sands Bethlehem, PA

Net revenue at Sands Bethlehem was $142 million, up 2.2% year over year, attributable to a 2.3% rise in casino revenues. Rooms, mall, food and beverage and convention, retail and other revenues remained flat in the quarter.

Adjusted property EBITDA was down 5.3% year over year to $36 million.

Moreover, Table Games Drop was down 4.3%.

Las Vegas Sands Corp. Price, Consensus and EPS Surprise

 

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

Zacks Rank & Stocks to Consider

Las Vegas Sands has a Zacks Rank #3 (Hold). Better-ranked stocks in the sector include Boyd Gaming Corporation BYD, Century Casinos, Inc. CNTY and Penn National Gaming, Inc. PENN. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Boyd Gaming’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 14.27%. Further, for 2017, EPS is anticipated to increase 24.8%.

The Zacks Consensus Estimate for Century Casinos’ 2017 earnings climbed 27.3% over the last 60 days. Further, for 2017, EPS is projected to increase 47.4%.

The Zacks Consensus Estimate for Penn National Gaming’s 2017 earnings climbed 45%, over the past 60 days. Moreover, the company’s earnings surpassed the same in each of the last four quarters, with an average beat of 67.45%.

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Las Vegas Sands Corp. (LVS): Free Stock Analysis Report
 
Century Casinos, Inc. (CNTY): Free Stock Analysis Report
 
Boyd Gaming Corporation (BYD): Free Stock Analysis Report
 
Penn National Gaming, Inc. (PENN): Free Stock Analysis Report
 
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