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It has been about a month since the las t earnings report for Las Vegas Sands (LVS). Shares have lost about 7.1% 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 the most recen t earnings report in order to get a better handle on the important drivers.

Las Vegas Sands Q1 Earnings & Revenue Beat Estimates

Las Vegas reported better-than-expected earnings and revenues in first-quarter 2019, after missing the Zacks Consensus Estimate in the trailing two quarters.

Adjusted earnings came in at 91 cents per share, which declined 12.5% year over year but surpassed the Zacks Consensus Estimate of 85 cents. Net revenues of $3,646 million outpaced the consensus mark of $3,505 million and also improved 1.9% on a year-over-year basis.

In the quarter under review, top-line growth was primarily driven by increased revenues at casino, rooms, mall as well as Food and beverage. The company also generated solid revenues from Macao operations. Meanwhile, Las Vegas revenues declined in the quarter.

Asian Operations

Las Vegas Sands' Asia business includes the following resorts:

The Venetian Macao

Net revenues increased 3.3% year over year to $897 million on a 3.4% rise in casino revenues, 5.7% growth in malls revenues and 15.8% improvement in Convention, Retail and Other revenues. However, revenues from rooms were flat, whereas food and beverage revenues declined 4.3%.

Adjusted property EBITDA rose 3.7% year over year to $361 million in the quarter under review.

Non-rolling chip drop increased 1%, whereas rolling chip volume declined 4.6%.

Sands Cotai Central

Net revenues improved 5.1% year over year to $577 million driven by a 6.5% increase in casino revenues, 2.4% rise in rooms revenues and 14.3% improvement in mall revenues. In the meantime, food and beverage revenues fell 10.3% from the year-ago level, whereas and convention, retail and other revenues were flat year over year.

Adjusted property EBITDA was $212 million, up 5.5% year over year.

Both non-rolling chip drop and rolling chip volume declined 3.5% and 19.2%, respectively.

The Parisian Macao

Revenues amounted to $454 million, mirroring a 26.5% increase year over year. The upside can be mainly attributed to a 33% rise in casino revenues and 20% surge in food and beverage revenues. However, rooms and mall revenues slumped 3% and 20%, respectively.

Adjusted property EBITDA improved 40.5% year over year to $163 million.
Non-rolling chip drop improved 5% while rolling chip volume declined 14.8%.

The Plaza Macao and Four Seasons Hotel Macao

Net revenues jumped 17.3% to $224 million on a 21.8% increase in casino revenues, 11.1% gain in rooms revenues, and 12.5% increase in food and beverage revenues. Nevertheless, revenues from mall as well as convention, retail and other remained flat year over year.

Adjusted property EBITDA decreased 16.4% to $85 million.

Rolling chip volume increased 46.9%, while non-rolling chip drop fell 14.4%.

Sands Macao

Revenues were down 1.3% year over year to $152 million on a 2.1% decline in casino revenues.

Adjusted property EBITDA declined 14.9% to $40 million.

While rolling chip volume rose 33.9%, non-rolling chip drop increased 0.9%.

Marina Bay Sands, Singapore

Net revenues fell 12% year over year to $767 million due to a 16.6% decline in casino revenues. On the flip side, rooms revenues as well as Food and Beverage revenues rose 2% and 1.9%, respectively. Mall revenues also increased 2.4%.

Adjusted property EBITDA of $423 million in the first quarter decreased 21.8%.

Both non-rolling chip drop and rolling chip volume declined 3.9% and 3.3%, respectively.

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, decreased 1.3% to $471 million on a 5.8% and 1.8% fall in casino revenues and Convention, Retail and Other revenues, respectively. However, rooms, and food and beverage revenues increased 0.6% and 2.3% each.

Adjusted property EBITDA in the quarter totaled $138 million, which declined 2.1% on a year-over-year basis.

Table games drop fell 14.7%, while slot handle rose 8.1%.

Sands Bethlehem

Net revenues totaled $137 million, up 2.2% year over year, driven by 1.7% gain in casino revenues and 16.7% increase in food and beverage revenues. Meanwhile, revenues from rooms, mall as well as convention, retail and other revenues remained flat in the quarter under review.

Adjusted property EBITDA in the quarter rose 13.8% to $33 million.

Table games drop declined 2.5%, while slot handle rose 1.9%.

Operating Results

On a consolidated basis, adjusted property EBITDA decreased 3.2% year over year to $1.45 billion in the first quarter. The downside can be attributed to a decline in adjusted EBITDA from the Marina Bay Sands, Las Vegas Operating Properties and Sands Bethlehem businesses.

Adjusted net income increased 13.8% year over year to $708 million.

Balance Sheet

As of Mar 31, 2019, unrestricted cash balances were $4.13 billion. Total debt outstanding (excluding finance leases) summed $11.98 billion.

In the reported quarter, capital expenditures amounted to $240 million. This was mainly due to construction, development and maintenance activities of $128 million in Macao, $49 million at Marina Bay Sands and $61 million in Las Vegas.

Quarterly dividend paid by the company was 77 cents per share, while it repurchased $174 million of its common stock.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

At this time, Las Vegas Sands has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. 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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