Las Vegas Sands LVS is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
The consensus EPS estimate for the quarter has been revised This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out.
The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. For Las Vegas Sands, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. So, this combination makes it difficult to conclusively predict that Las Vegas Sands will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates.
So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Dividend Calculator. Stock Analysis. LVS nyse. Earnings Data.
Report Date. Period Ending. Consensus EPS Forecast. Analyst Consensus Moderate Buy. LVS Earnings History. Fiscal Quarter. Last Year's EPS. And so, from that standpoint, we're very excited, but we'll always look at the return potential of buying equity.
Do we believe the equity is at a compelling level? But at the same time, we also like to believe that we have some real significant development opportunities in the future that will create very significant returns as well. So, to your point, it is a balance. Your next question is from the line of Dan Politzer from Wells Fargo. Hi, everyone. Good afternoon. Thanks for taking my questions. So, on Singapore, how do you think about margins for this property over the next couple of years?
I think there's a higher tax rate that goes into effect and potentially impact from construction disruption and possibly some of the costs you were able to optimize over the past 18 months. So, going forward over the next couple of years, how do you think about that given the expectation for pent-up demand to come back in ? Well, first of all, look at what's happened. Again, it's instructive look at Las Vegas. The so-called 4-year recovery took again about less than a year. I think this market in Singapore is proving very resilient in the past, especially when the governments come open the travelings, open the doors up, I think margins will be just fine.
We didn't -- by the way, we didn't furlough people and lay off lots of people, didn't squeeze people out the door, we stood by our employees.
And I think we didn't necessarily maximizing credit. We decided not to do that. And I think that's to our credit. And again, if Vegas is instructive, and I believe it is, the demand is going to be extraordinary in Asia.
The lockdown here in Las Vegas was much shorter than the lockdown in Asia. Yet the gambling proclivity for lot of Asian countries is stronger than Las Vegas. So, anybody who thinks Singapore is not going to come back with a vengeance, I think has mistaken, the same in Macao. And of course, those revenues will drive our margins. In fact, I'm really bullish on Singapore, will be the first and the best place open next year for the gamer or for the tourists or for the leisure traveler.
It's going to be exceptional plan to revisit. You see where the government is going. I mean, they've indicated they're anxiously getting open there. Vaccination rates are soaring. The traveling to be established.
The neighborhood is being better in Malaysia, Korea, Japan. Indonesia is still lagging but coming on. So, I think it's just question of time, '22 is a turn year. And then just one more on Macao. I mean, when Macao does eventually recover, how do you think about your share of mass and slot GGR evolving given the opening of the Londoner which we didn't have back in And also, I know you targeted a different customer, but how do you anticipate any impact from Lisboa Palace on your properties?
And if so, if there is an impact, which ones? Yeah, Rob. I think history of Macao shows every time we have large-scale, high-quality product coming in on Cotai, it helps the market. And I think when the demand comes back, it's going to be to the market's benefit and to the whole industry's benefit that we've got a good new product that customers can patronize.
And that applies to Lisboa Palace that applies to what some of our other competitors will be -- will have opened by then. And obviously, we think first and foremost is going to apply to what we've completed in Grand Suites at Four Seasons and also the Londoner Macao.
So, we're very excited and confident that when the demand returns, all these new projects, but I would say, especially our projects is going to be a growth driver for the industry and by implication, we hope that we will achieve good market share.
But I think it's much more about as the history and two decades have shown growing the overall pie. And I think in terms of segments, again, I wouldn't hesitate to say that it's going to be positive across a very broad base of segmentation of the mass, the premium mass and so forth. Your next question is from the line of David Katz from Jefferies. OK, we'll go to the next question.
Hey, guys. Just one question here for me. And Rob, I know you're probably tired of answering a bunch of hearsay questions about the renewal process and this one, it's probably going to be a bit more direct. But I guess, a simple question is, do you guys see a scenario out there where you are not operating any casino assets in Macao at some point in the near future. And I'm sorry to be so blunt, but it's a question I think a lot of investors are pondering right now given the vagueness that has come out of the Chinese government about what they're actually looking for.
I do not. I see no chance of that whatsoever. I think we're -- but I'll refer -- I apologize if I sound like a broken record. But the truth is we've been doing this for a couple of decades. We have the unparalleled track record. The whole Cotai developer was the one guy did that at Sheldon. And I think we have been a seller with our employees. So, I remain beyond confident that we'll be operating in Macao.
I don't think there's any chance whatsoever that we wouldn't be. And I'm not saying that rhetorically, I mean that sincerely, every indication we've gotten is the opposite. So, we, again, are very proud of our track record, proud of our development, and proud of our investment. But I think the government has recognized we've been awfully good licensee and partner and friends with China and Macao, and we're eager to be back there. So no, I don't believe that's a possibility.
There is no sleeping at Jefferies. What I was really hoping to have the team's perspective on is really VIP gaming because we do spend a fair amount of time talking with investors, with people on the ground, etc. There have been some sort of public pressures on it, talk about currency changes and things like that, that presumably would have some impact. What does the solid recovered core look like in VIP? I just want Grant to take that question he lives and breathes. You're talking Macao, I assume, in the whole junket issues.
Is that right? So, let's begin with a little bit of historical perspective. Again, for the plus years we've been doing business in Macao, we've heard this.
This isn't going to work. That's not going to work. The revenues will never go anywhere. We've been hearing this for often lot. Segment is going to fall apart. The latest thing is to say the VIP is going to go away to the junket.
So, I just remain a huge believer in that market of all segments. Obviously, we made our strength in the mass premium. That's been our bread and butter and will continue to be, but I don't think there's every discount. Those who have discount this segment has done it at their own prowl. I think it can -- it could move to a different channel, a different way of being available. But the gamers are going to keep happening in all segments in Macao. As a precursor to Grant's comments, I think you have to realize how powerful this market has been, the growth has been unbelievable.
Those of us who started back in , '03 and '04, never have dreamed the way every segment just developed. In the , '11, '12 year, it was the junkets that drilled Macao, that morphed into our premium mass market and now premium mass-mass market. And again, our company has been more focused on those base mass and premium mass segments.
But the VIP has served the market very well. So, I think it will reemerge in a different form with different channels of distribution. And that's my take. Grant, you're much closer to this, so please speak up. No, I think you said it very well, Rob. I think it's important to remember, again, that the proportion of profit coming from that segment especially, I think you're more referencing the junket segment versus our own VIP business is very, very small.
So, I know people spend a lot of time talking about it, but our business is really geared to that large-scale destination resort with premium mass, mass, the leisure, the FIT, and the future is going to be that structural growth in those segments, as well as the nongaming, the retail, the mice.
I think the driver -- to Grant's point, the driver that market is always going to be what we're focused is lifestyle, extraordinary entertainment, restaurants, retail, rooms. That's where our investment is. You'll see the Londoner, that's where the focus was, the Four Seasons is more toward the very high-end premium mass. But no matter what form it takes, the gamer is going to keep growing over there and the desire to come to Macao is going to grow.
So, whether it'd be the new assets we built another company, it just enhances the market. And I don't think there will ever be a lack of customers, a lack of visitors to Macao. Las Vegas Sands shares have lost about While Las Vegas Sands has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter s , but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Las Vegas Sands was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank 4 Sell for the stock.
So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks 1 Rank Strong Buy stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well.
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