Las Vegas Sands shares fall after Q3 earnings miss Wall Street estimates

Earnings miss sends shares lower

Las Vegas Sands shares traded lower by more than 1% after the company disclosed third-quarter earnings results that missed Wall Street estimates. For the July-through-September period, Las Vegas Sands posted revenue of $3.22 billion and earnings per share of 54 cents, missing Wall Street expectations of 68 cents per share on revenue of $3.33 billion.

The stock is down 40.3% year-to-date.

Macau and Singapore operations underperform

Sands China saw revenue edge up just 1.4% to $1.93 billion, while net income dropped 29.8% year-over-year to $191 million. The company owns 75% of Sands China and could gradually increase that stake.

Marina Bay Sands revenue fell to $1.29 billion from $1.43 billion a year earlier in the third quarter. For the quarter, Marina Bay Sands generated $590 million in adjusted EBITDA, compared to $743 million a year earlier.

Dividend increase and share buybacks

Las Vegas Sands announced a 20% dividend increase, with the 2027 dividend set at $1.44 per share, or 36 cents on a quarterly basis. The dividend increase marks the third straight increase to the payout since it was reinstated in July 2023. On a quarterly basis, the dividend payout has surged 80% since its restoration following its pandemic-era suspension.

Las Vegas Sands had an unrestricted cash balance of $2.86 billion at the end of the third quarter. Las Vegas Sands bought back $950 million worth of its shares during the quarter. Since restoring its share buyback program three years ago, Las Vegas Sands has reduced its shares outstanding count by 19%.