Las Vegas Sands (LVS) To Report Q1 Earnings: A Beat In Store?

Las Vegas Sands Corp. (NYSE:LVS) is slated to report first-quarter 2017 numbers on Apr 26, after market close. We anticipate this casino operator to beat expectations.

In the last reported quarter, Las Vegas Sands posted a 4.62% negative earnings surprise.

Let’s see how things are shaping up for this announcement.

Why a Likely Positive Surprise?

Our proven model shows that Las Vegas Sands is likely to beat on earnings because it has the perfect combination of the two key ingredients.

Zacks ESP: Las Vegas Sands has an Earnings ESP of +1.67%. This is because the Most Accurate estimate is 61 cents, while the Zacks Consensus Estimate is pegged lower at 60 cents. A favorable Earnings ESP serves as a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Las Vegas Sands currently carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.

Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing a negative estimate revision.

The combination of Las Vegas Sands’ favorable Zacks Rank and positive Earnings ESP makes us reasonably confident of an earnings beat.

What is Driving the Better-than-Expected Earnings?

Per the Macao Gaming Inspection and Coordination Bureau, gross gaming revenues (GGR) rose in all the three months of the quarter, thereby continuing the revival in Macao.

Resultantly, consistent efforts to boost tourism and traffic in Macao are yielding results, and the company’s Macao portfolio is experiencing strong visitation and higher hotel occupancy rates, given the improved operating environment there. We thus expect the first-quarter results to be propelled by new resort addition and provision of better non-gaming options.

Particularly, the opening of Las Vegas Sands’ subsidiary, Sands China Ltd.’s The Parisian (on Sep 13, 2016), continues to attract visits by tourists and leisure gamblers, and should scoop up the quarter’s revenues.

However, the results may be somewhat hampered as concerns related to the sustainability of revenues from the VIP market linger.

Meanwhile, the company’s focus on renovation and promotion of its Las Vegas properties are likely to result in high occupancy rates and continue driving segmental performance.

Other Stocks to Consider

Las Vegas Sands is not the only company looking up this earnings season. Here are some other companies to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:

Penn National Gaming, Inc. (NASDAQ:PENN) has an Earnings ESP of +20.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Churchill Downs Incorporated (NASDAQ:CHDN) has an Earnings ESP of +13.73% and a Zacks Rank #3.

Wynn Resorts, Limited (NASDAQ:WYNN) has an Earnings ESP of +5.41% and a Zacks Rank #3.

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