How LVS Performs After Earnings Are Released

With Las Vegas Sands poised to release second quarter earnings on Monday, July 24, it makes sense to take a look at how LVS stock has performed historically after earnings were released.

To do this, we looked at the last twelve earnings releases and calculated the price performance from the close one day before the earnings release date to the close one day after the release date.  The table below shows this price performance in addition to the EPS beat or miss.  The EPS beat or miss is the percentage that the reported actual EPS was above or below the consensus EPS Wall Street estimate.



Las Vegas Sands (LVS) Post Earnings Performance

Report DateEPS Beat/MissPrice Performance
4/26/176.5%1.2%
1/25/17-4.6%-6.3%
11/3/1622.0%2.6%
7/25/16-7.1%7.0%
4/20/16-26.2%-9.7%
1/27/16-3.1%4.7%
10/21/154.8%-1.5%
7/22/15-1.6%1.6%
4/22/15-10.8%-0.6%
1/28/1513.6%-2.6%
10/15/140.0%7.4%
7/16/14-4.5%-1.2%

Over the last twelve quarters, LVS traded up six times and it traded down six times.  This lines up perfectly with the EPS beat or miss.  Every time LVS posted an EPS beat the stock performed positively; every time LVS posted an EPS miss the stock performed negatively. Unlike the price performance of WYNN, over the last twelve quarters EPS and price performance around earnings are 100% correlated for LVS.

This 100% correlation between EPS beat or miss and the price performance is actually very strange.  While the reported EPS is important, investors look at a wide range of statistics and metrics during an earnings release, including reported revenue and company specific key statistics such as REVPAR and casino win rate.  In the case of LVS (and its cohort WYNN) stats in its Macau division are also strong stock price drivers.



With all of this said, the correlation of the reported EPS and the price of the stock after earnings for LVS is important to understand.  We’ll see if this streak holds when LVS reports earnings next week.

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