A month has gone by since the last earnings report for Las Vegas Sands (LVS). Shares have lost about 9.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Las Vegas Sands due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Las Vegas Sands reported fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The metrics declined on a year-over-year basis.
During the fourth quarter, the company reported solid financial and operational performance at Marina Bay Sands, Singapore and continued recovery in the Macao market. LVS continues to execute its strategic objectives and remains optimistic about achieving industry-leading growth in both Macao and Singapore through its ongoing capital investment initiatives. It is optimistic about the introduction of new suite offerings and enhanced service levels and increased tourism spending in Asia.
Las Vegas Sands reported adjusted earnings per share (EPS) of 54 cents, missing the Zacks Consensus Estimate of 60 cents by 10%. In the year-ago quarter, it had reported an EPS of 57 cents. Interest expense (net of amounts capitalized) totaled $180 million compared with $190 million reported in the year-ago quarter.
Quarterly net revenues of $2.90 billion beat the consensus mark of $2.85 billion. However, the top line fell 0.7% year over year.
Las Vegas Sands’ Asia business includes the following resorts (all figures are compared with the year-ago quarter’s reported levels):
Net revenues from The Venetian Macao were $682 million, down from $748 million in the year-ago quarter. The downside was due to a decrease in casino revenues. Our model expected the quarterly revenues for this metric to be $831.5 million.
Quarterly revenues from the casino, rooms and mall were $534 million, $54 million and $63 million, respectively, compared with the year-ago quarter’s reported figures of $607 million, $49 million and $66 million. Convention, retail and other revenues were $15 million, up from $10 million reported a year ago. Food and beverage revenues were $16 million, flat year over year.
Adjusted property EBITDA totaled $250 million, down from $302 million reported in the fourth quarter of 2023. Our estimate for the metric was $275.2 million.
Non-rolling chip drop and rolling chip volumes were $2.31 billion and $0.7 billion, respectively, compared with the year-ago quarter’s reported figure of $2.46 billion and $1.25 billion.
The segment’s hotel revenue per available room (RevPAR) was $204 million compared with $200 million reported in the year-ago period. Occupancy rates were 99.5%, up from the prior year’s reported value of 98.7%.
Net revenues from The Londoner Macao amounted to $518 million, down from $589 million reported in the prior-year period. Decreased casino, rooms and food and beverage revenues caused the downside. We estimated the metric to be $602.7 million.
Revenues from casino, rooms and food and beverage totaled $387 million, $68 million and $22 million, respectively, compared with the year-ago quarter’s reported figure of $433 million, $92 million and $27 million. Mall revenues increased to $24 million from $19 million in the year-ago quarter. Quarterly revenues from convention, retail and other totaled $17 million, down from $18 million reported in the prior-year quarter.
Adjusted property EBITDA totaled $144 million, down from $190 million reported in the year-ago quarter. Our estimate for the metric was pegged at $140.1 million.
Non-rolling chip drop and rolling chip volume were $1.63 billion and $1.85 billion, respectively, down from the year-ago quarter’s reported figures of $1.85 billion and $2.32 billion.
The segment’s hotel RevPAR was $284 million compared with $180 million in the year-ago quarter. Occupancy rates were 98%, up from 96.8% reported in the fourth quarter of 2023.
Net revenues from The Parisian Macao were $228 million, up from $222 million reported a year ago. The uptick was driven by improvement in casino revenues. We estimated the metric to be $218.5 million.
Revenues from casino, rooms and food and beverage were $171 million, $35 million and $14 million, respectively, compared with the year-ago quarter’s reported figures of $163 million, $35 million and $14 million. Mall revenues declined to $7 million from $9 million in the year-ago quarter. Quarterly revenues from convention, retail and other totaled $1 million, flat year over year.
Adjusted property EBITDA totaled $69 million, compared with $68 million reported a year ago. Our estimate for the metric was $71.8 million.
Non-rolling chip drop totaled $821 million, up from $778 million reported a year ago.
The segment’s hotel RevPAR increased to $156 million from the prior year’s reported figure of $151 million. Occupancy rates were 99.5% compared with the prior year’s reported value of 98.8%.
Net revenues from The Plaza Macao and Four Seasons Macao were $223 million, up from $192 million reported a year ago. The uptrend can be attributed to an increase in casino and rooms revenues. Our estimate for the metric was $280.4 million.
Casino, rooms and mall revenues were $142 million, $30 million and $42 million, respectively, compared with the year-ago quarter’s figures of $95 million, $25 million and $62 million. Revenues from food and beverage came in at $8 million compared with $9 million reported in the prior-year quarter.
Adjusted property EBITDA totaled $83 million, up from $71 million reported in the year-ago quarter. Our estimate was $76.5 million.
Non-rolling chip drop and rolling chip volume were $759 million and $1.75 billion, respectively, compared with $682 million and $2.39 billion reported in the year-ago quarter.
The segment’s hotel RevPAR increased to $485 million from $416 million reported in the fourth quarter of 2023. Occupancy rates were 97.3% compared with the prior year’s reported value of 87.8%.
Net revenues from Sands Macao came in at $86 million compared with the year-ago period’s value of $81 million. The increase was primarily backed by a rise in casino revenues. Our projection for the metric was $84.1 million.
Casino revenues totaled $78 million compared with $72 million reported in the year-ago quarter.
Adjusted property EBITDA totaled $20 million, up from $17 million in the prior-year period. Our estimate was $12.8 million.
Non-rolling chip drop and rolling chip volume were $389 million and $69 million, respectively, compared with the year-ago quarter’s reported values of $410 million and $28 million.
The segment’s hotel RevPAR was $173 million, flat year over year. Occupancy rates were 99.1%, up from 98.9% reported in the year-ago quarter.
Net revenues from Marina Bay Sands totaled $1.14 billion, up from $1.06 billion reported in the year-ago quarter. The increase was backed by a rise in casino, rooms and mall revenues. Our estimate for the metric was $885.4 million.
Revenues from the casino and mall totaled $792 million and $82 million, respectively, compared with the year-ago quarter’s reported values of $741 million and $76 million. Rooms and food and beverage generated revenues of $125 million and $95 million, compared with $117 million and $92 million reported in the prior-year quarter. Quarterly revenues from convention, retail and other totaled $43 million, up from $35 million reported in the prior-year quarter.
Adjusted property EBITDA totaled $537 million, down from $544 million reported in the year-ago quarter. We expected this metric to be $492.5 million.
Non-rolling chip drop and rolling chip volume were $2.34 billion and $8.06 billion, respectively, compared with the year-ago quarter’s reported values of $1.89 billion and $7.24 billion.
The segment’s hotel RevPAR was $874 million, up from $611 million in the fourth quarter of 2023. Occupancy rates were 94.3%, down from 94.4% reported in the year-ago quarter.
On a consolidated basis, adjusted property EBITDA totaled $1.1 billion in the fourth quarter, down from $1.2 billion reported in the year-ago quarter.
Net revenues in 2024 came in at $11.3 billion compared with $10.4 billion in 2023.
Operating income in 2024 came in at $2.4 billion compared with $2.3 billion reported in 2023.
In 2024, diluted earnings per share came in at $1.96 per share compared with $1.60 reported in the previous year.
As of Dec. 31, 2024, Las Vegas Sands had unrestricted cash balances of $3.65 billion compared with $4.21 billion in the previous quarter. Total debt outstanding (excluding finance leases and financed purchases) was $13.62 billion, down sequentially from $13.88 billion.
In the reported quarter, capital expenditures totaled $547 million, comprising construction, development and maintenance activities of $345 million in Macao and $194 million at Marina Bay Sands.
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -11.3% due to these changes.
Currently, Las Vegas Sands has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
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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This article originally published on Zacks Investment Research (zacks.com).
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