- Las Vegas Sands delivers estimate-beating Q3 results
- Casino operator increases quarterly dividend to 30 cents a share from 25 cents
- It’s lifting its buyback program to $2 billion
Shares of Las Vegas Sands (NYSE: LVS) soared in Wednesday’s after-hours session after the casino giant posted third-quarter results that soundly beat Wall Street forecasts and on news the company is significantly expanding its shareholder rewards programs.
With Marina Bay Sands in Singapore again serving as a beacon of strength, Sands earned 78 cents a share on revenue of $3.38 billion during the July through September period. Those figures increased 77% and 24%, respectively, year-over-year. Analysts expected per share earnings of 63 cents on sales of about $3.1 billion.
Helped in part by that strong quarterly showing, Sands told investors it’s boosting quarterly dividend to 30 cents a share from 25 cents starting in 2026. That marks the second increase to the payout since it was reinstated in July 2023. With today’s announcement, the Sands dividend has surged 50% since it was brought back following a three-year suspension forced by the coronavirus pandemic.
Sands on Buyback Binge, Too
At the end of the third quarter, the Venetian Macau operator had unrestricted cash of $3.35 billion, indicating it has the resources with which to return capital to shareholders and it’s doing just that.
In addition to the dividend announcement, the gaming company told investors it repurchased approximately $500 million worth of its stock during the September quarter and that the board of directors approved lifting a buyback plan with $700 million left on it to $2 billion.
Since the resumption of our share repurchase program in the fourth quarter of 2023 through September 30, 2025, we have repurchased approximately 88 million shares of our common stock at an average price of $45.42, for a total investment of $4.0 billion,” according to a statement. “The timing and actual number of shares to be repurchased in the future will depend on a variety of factors, including the company’s financial position, earnings, legal requirements, other investment opportunities and market conditions.”
The company added it bought back $337 million worth of Sands China equity during the quarter. Sands China is the entity that oversees the operator’s five Macau casino hotels.
Macau on the Mend
This year is shaping up to be the best post-COVID year in Macau and Sands’ third-quarter results reflect as much. During that period, the largest Macau operator notched adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $601 million.
“In Macao, our decades-long commitment to making investments that enhance the business and leisure tourism appeal of Macao and support its development as a world center of business and leisure tourism positions us well for future growth,” said CEO Robert Goldstein in the press release.
Sands spent $99 million enhancing its Macau properties during the third quarter.
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