Sands Boosts Dividend 20%, But Stock Slumps Following Q3 Earnings Miss

Shares of Las Vegas Sands (NYSE: LVS) traded lower following a slack third-quarter earnings update, overshadowing a 20% dividend hike announced by the casino operator. Sands China’s Venetian Macau. Las Vegas Sands raised its dividend by 20%. Shutterstock) The already battered gaming stock is off more than 1% at this writing after the company disclosed estimate-missing results for the September quarter with Macau looming as the culprit. For the July through September period, Sands posted revenue of $3.22 billion and earnings per share of 54 cents, but analysts expected earnings of 68 cents on sales of $3.33 billion. Sands China, which runs five integrated resorts in Macau, saw revenue rise just 1.4% to $1.93 billion while net income dipped 29.8% year-over-year to $191 million. Las Vegas Sands Chairman and CEO Patrick Dumont remains optimistic about the long-term opportunity set in the Chinese casino enclave. “We are encouraged by our progress in Macau during the quarter, with our ongoing investments in enhanced service and hospitality offerings contributing to growth in volumes across all gaming segments as compared to the prior year,” he said in a statement. Sands owns 75% of Sands China and could gradually increase that stake. Sands Dividend Heading In the Right Direction Off 40.3% year-to-date, Sands, like other casino stocks, hasn’t given investors much to cheer about, but the Venetian Macau operator’s dividend is heading in the right direction. The company said today its 2027 dividend will be $1.44 per share, or 36 cents on a quarterly basis, up 20% from current levels while marking the third straight increase to the payout since it was reinstated in July 2023. On a quarterly basis, Sands’ dividend, which was suspended at the height of the coronavirus pandemic, has surged 80% since it was restored. The Parisian Macau operator has the resources needed to return capital to shareholders as highlighted by an unrestricted cash balance of $2.86 billion at the end of the third quarter. Sands also bought back $950 million worth of its shares during the quarter. Since restoring its share buyback program three years ago, Sands has reduced its shares outstanding count by 19%. That’s meaningful because it lowers the operator’s dividend obligations. A Surprise Singapore Slump Marina Bay Sands in Singapore has long been a beacon of strength for the parent company, but that normally strong-performing integrated resort didn’t dodge the third-quarter blues as its revenue for the period fell to $1.29 billion from $1.43 billion a year earlier. For the third quarter, Marina Bay Sands generated earnings before interest, taxes, depreciation and amortization (EBITDA) of $590 million, down from $743 million. Dumont remains constructive on the venue’s longer-ranging prospects. “We remain enthusiastic about our growth prospects in Singapore both today and upon the completion of our ongoing expansion project, which will meaningfully increase our suite capacity and entertainment offerings, including through the introduction of an arena designed to be the most important entertainment venue in the region,” he said in the press release. The post Sands Boosts Dividend 20%, But Stock Slumps Following Q3 Earnings Miss appeared first on Casino.org.