Yahoo Finance What Awaits VICI Properties (VICI) This Earnings Season?
VICI Properties Inc. VICI, a leading experiential real estate investment trust (REIT) with a focus on gaming, hospitality and entertainment destinations, is set to report its first-quarter earnings for 2023 on May 1 after market close.
As the company continues to expand its portfolio and deliver value to shareholders, investors are closely monitoring VICI's performance and growth potential in the first quarter of 2023. In this article, we will discuss the factors that may have influenced the company's financial results in the first quarter, as well as its prospects for future growth.
In the last reported quarter, this New York-based experiential REIT, which owns the portfolios of market-leading gaming, hospitality and entertainment destinations, delivered a surprise of 2.0% in terms of adjusted funds from operations (FFO) per share.
In the last four quarters, the company exceeded the Zacks Consensus Estimate on one occasion and met the same on the other three. It has a trailing four-quarter surprise of 0.50%, on average. This is depicted in the graph below:
VICI Properties Inc. Price and EPS Surprise
VICI Properties Inc. price-eps-surprise | VICI Properties Inc. Quote
Factors to Note
VICI Properties, a premier gaming and hospitality REIT, primarily invests in income-producing properties leased to industry-leading operators. The company's diversified portfolio includes a mix of gaming, hotel and entertainment assets that are strategically located across the United States. With a focus on building long-term value for shareholders, VICI strives to achieve sustainable growth through acquisitions, strategic partnerships and property development.
VICI enjoys the ownership of three of the most iconic entertainment facilities on the Las Vegas Strip. These include Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.
With consumers returning to entertainment venues and travel activities resuming, the demand for VICI's properties is likely to have experienced a boost in the first quarter.
Over the past two years, the company has made concerted efforts to grow its portfolio and team up with the best-in-class tenants. Also, it has made strategic financing activities. Such efforts are likely to have aided VICI Properties’ performance in the quarter under review.
In the first quarter of 2023, VICI is expected to report robust revenue and earnings growth, driven by its diversified portfolio and strategic acquisitions as well as increased visitation and consumer spending.
Projections for Q1 2023
The Zacks Consensus Estimate for first-quarter revenues is pegged at $831.46 million. This suggests a year-over-year surge of 99.57%.
The consensus mark for income from sales-type leases is currently pegged at $466.56 million. This indicates an increase from the prior quarter’s $386.29 million and the year-ago quarter’s $326.74 million.
The Zacks Consensus Estimate for income from lease financing receivables and loans stands at $322.35 million, down sequentially from $355.69 million but up from the year-ago period’s $72.88 million. Similarly, revenues from golf operations are estimated at $9.08 million, down from the prior quarter’s $10.11 million but higher than the year-ago quarter’s $8.63 million.
The consensus estimate for the quarterly FFO per share has remained unrevised over the past month at 52 cents. It suggests an increase of 18.2% year over year.
Here Is What Our Quantitative Model Predicts
Our proven model predicts a surprise in terms of FFO per share for VICI Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
VICI Properties currently sports a Zacks Rank of 2 and has an Earnings ESP of +2.36%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our model shows that Park Hotels & Resorts Inc. PK and Americold Realty Trust, Inc. COLD also have the right combination of elements to report a surprise this quarter.
Park Hotels & Resorts is slated to report quarterly numbers on May 1. PK has an Earnings ESP of +5.88% and carries a Zacks Rank of 3 presently.
Americold Realty Trust, scheduled to report quarterly numbers on May 4, has an Earnings ESP of +17.72% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Conclusion
As investors await the release of VICI Properties' first-quarter 2023 earnings, all eyes will be on the company's ability to capitalize on the ongoing recovery in the gaming and hospitality sectors and its strategic acquisitions and expansion plans. This in-depth analysis aims to provide a clearer picture of VICI's performance and potential for future growth. By closely monitoring key performance indicators, market trends and growth opportunities, investors can make informed decisions about the prospects of this promising experiential REIT.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report
Americold Realty Trust Inc. (COLD) : Free Stock Analysis Report
VICI Properties Inc. (VICI) : Free Stock Analysis Report
