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.

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, missing Wall Street expectations of 68 cents per share on revenue of $3.33 billion.

Sands China, which operates five integrated resorts in Macau, saw revenue edge up just 1.4% to $1.93 billion, while net income dropped 29.8% year-over-year to $191 million. Despite the soft quarterly metrics, Las Vegas Sands Chairman and CEO Patrick Dumont expressed optimism regarding the market’s trajectory.

Sands owns 75% of Sands China and could gradually increase that stake.

Dividend and Buyback Expansion

Down 40.3% year-to-date, Sands—like much of the broader casino sector—has given investors little to cheer about on the stock chart. However, the Venetian Macau operator continues to bolster capital returns.

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, the payout has surged 80% since its restoration following its pandemic-era suspension.

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 quarter, Marina Bay Sands generated $590 million in adjusted EBITDA, compared to $743 million a year earlier. Dumont remained upbeat on the property’s long-term potential amid ongoing infrastructure investments.

“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,” Dumont said.

While Q3 earnings failed to hit Wall Street’s mark, Sands’ steady cash flow, aggressive share buybacks, and expanding dividend signal that management remains confident in its long-term Asia expansion strategy.