Las Vegas Sands (LVS) down 1% since last revenue report: Can it bounce back?

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A a month has passed since the last Las Vegas Sands (LVS) earnings report. Stocks lost around 1% over this time frame, underperforming the S&P 500.

Will the recent negative trend continue until its next earnings release, or should Las Vegas Sands break out? Before we dive into the reaction of investors and analysts lately, let’s take a look at his latest earnings report to better understand the important catalysts.

Las Vegas Sands Q1: Better than Estimated Results, Fall Y / Y

Las Vegas Sands posted mixed results in the first quarter of 2021, in which profits beat Zacks’ consensus estimate, but revenues missed the same. While the bottom line broke the consensus mark after missing the last three quarters, the top line lagged the estimate after beating in the previous two quarters. As a result of the results, the company’s shares fell 1.3% in the after-hour trading session on April 21.

Income and income discussion

In the first quarter of 2020, the company posted an adjusted loss per share of 25 cents, narrower than Zacks’ consensus estimate of a loss of 27 cents. In the quarter of the previous year, the company reported an adjusted loss of 9 cents per share. During the quarter under review, interest expense (net of capitalized amounts) amounted to $ 154 million compared to $ 128 million in the prior year quarter.

Quarterly revenues of $ 1,196 million missed the consensus mark of $ 1,281 million. The figure was also down 15.6% from the figure for the quarter last year. In particular, the top line was affected by the drop in occupancy rates and RevPAR.

Asian operations

Las Vegas Sands Asia business includes the following resorts:

Venetian Macau

In the first quarter, net revenue decreased 7.9% year over year to $ 340 million. Revenues from casinos and shopping malls were $ 266 million and $ 46 million, up 6% and 58.6%, respectively. Food and beverage revenues increased 20% year over year to $ 6 million. Convention, retail and other, and theatrical revenues decreased 66.7% and 9.5% year over year to $ 3 million and $ 19 million, respectively .

Adjusted EBITDA for properties during the first quarter totaled $ 82 million compared to $ 49 million in the prior year quarter.

The decline in non-rolling chips increased 11.1% and rolling chip volumes fell 45.8% year over year.

In the quarter, segment hotel RevPAR declined 20.4% year-over-year to $ 74 million, while occupancy rates were 47.2% , against 39.2% in the quarter of the previous year.

The Londoner Macau

In the first quarter, net revenue fell 19.4% year over year to $ 137 million due to declines of 26%, 29.6% and 12.5% revenues from casinos, rooms, and food and beverage, respectively. However, malls, convention, retail and other revenues increased 55.6% and 100% year over year, respectively.

Adjusted EBITDA for properties was $ (23) million.

The decline in non-rolling chips fell 26.6%, while the volume of rolling chips climbed 213.2% year-over-year.

In the quarter, segment hotel RevPAR declined 9% year-over-year to $ 61 million, while occupancy rates were 35.5%, from 38.1% in the quarter of the previous fiscal year.

Parisian Macau

In the first quarter, revenue was $ 87 million, down 38.3% year over year. The drop was due to a 48.7% drop in casino revenues. It was further compounded by declines of 7.7%, 66.7% and 50% in revenues for rooms, malls, conventions and other retail businesses, respectively.

Adjusted EBITDA for properties was $ (8) million compared to $ (3) million in the prior year quarter.

The volumes of non-rolling chips and rolling chips fell 23.1% and 94% year-over-year, respectively.

In the quarter, segment hotel RevPAR declined 19.1% year-over-year to $ 55 million. Occupancy rates stood at 46.7% compared to 40.3% in the previous year quarter.

The Plaza Macao and Four Seasons Hotel Macao

In the first quarter, net revenue increased 58.9% to $ 170 million due to an increase of 175%, 33.3% and 139.4% in revenues from casinos, food and casinos. drinks and malls, respectively.

Adjusted EBITDA for properties during the reported quarter totaled $ 70 million, up 150% year over year.

The decline in non-rolling chips increased 21.9%, while the volume of rolling chips decreased 11.7% year-on-year.

In the quarter, segment hotel RevPAR increased 18.9% year-over-year to $ 189 million, while occupancy rates were 43.7% , against 48.4% in the quarter of the previous year.

Sands Macau

In the first quarter, revenue decreased 49.3% year over year to $ 35 million due to declines of 51.6%, 50% and 100% in revenue from casinos, food and beverage as well as convention, retail and other, respectively.

Adjusted real estate EBITDA for the quarter presented totaled $ (18) million, compared to $ (1) million in the prior year quarter.

The drop in non-rolling chips and the volume of rolling chips fell 51.2% and 4.5% year-on-year, respectively.

In the quarter under review, segment hotel RevPAR declined 7.5% year-over-year to $ 99 million, while occupancy rates stood at 71, 5% against 59.8% in the quarter of the previous year.

Marina Bay Sands, Singapore

In the first quarter, net revenue fell 30.4% year-over-year to $ 426 million due to declines of 31%, 56.8%, 19.5% and 31.3 % of revenues from casinos, rooms, food and beverage, convention, retail and other, respectively.

Adjusted EBITDA for properties during the reported quarter totaled $ 144 million, reflecting a 68.5% year-over-year decrease.

The volumes of non-rolling chip and rolling chips fell 54.8% and 48.9% year-over-year, respectively.

In the quarter, segment hotel RevPAR fell 57.7% year-over-year to $ 143 million, while occupancy rates were 63%, from 81% in the quarter of the previous year.

National operations

Las Vegas

In the first quarter, net revenue from Las Vegas operations fell 61.9% year over year to $ 139 million due to 48% and 68% declines in revenue casinos as well as food and beverage products, respectively. Room revenues also fell 64.6% year over year. In addition, revenues from conventions, retail and other industries fell 72.1% year over year.

Adjusted EBITDA for properties for the reported quarter totaled $ (47) million, down 153.4% ​​year over year.

The decline in table games was down 24.9%, while the handful of slots increased 3.6% year over year.

In the current quarter, RevPAR fell 65.9% year over year to $ 79 million, while occupancy rates were 42.6%, from 87.2% in the quarter of the previous year.

Operating results

On a consolidated basis, Adjusted EBITDA for properties totaled $ 244 million in the first quarter, compared to $ 349 million in the prior year quarter.

Balance sheet

As at March 31, 2021, unrestricted cash balances were $ 2.07 billion. The total outstanding debt (excluding finance leases) was $ 14.42 billion.

In the current quarter, capital expenditures totaled $ 291 million, driven by construction, development and maintenance activities of $ 268 million in Macau and $ 23 million at Marina Bay Sands.

How have the estimates evolved since?

Over the past month, investors have witnessed a downward trend in revised estimates. The consensus estimate has moved -87.1% due to these changes.

VGM scores

At the moment, Las Vegas Sands has a poor Growth Score of F, but its Momentum Score is doing much better with a C. Trapping a somewhat similar path, the stock has been given a D rating from the value side, which places it in the bottom 40% for this investment strategy.

Overall, the stock has an overall VGM score of F. If you’re not strategy focused, this score is the one you should be interested in.

Outlook

The estimates were broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It’s no surprise that Las Vegas Sands has a # 4 Zacks Rank (Sale). We expect a below-average return for the stock over the next few months.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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