Las Vegas Sands Surpasses Expectations with Strong Q3 Revenue
Posted on: October 18, 2023, 06:44h. Last updated on: October 18, 2023, 06:44h.
Las Vegas Sands (NYSE: LVS) has reported impressive third-quarter revenue, surpassing Wall Street’s forecasts. The company’s strength in its Macau casino hotels and Marina Bay Sands in Singapore contributed to this success.
Despite the temporary closure of Macau casinos due to a recent typhoon, Las Vegas Sands still achieved a modest but impressive top-line beat. The company earned 55 cents a share on sales of $2.8 billion during the July through September period, surpassing analysts’ projections of 55 cents on revenue of $2.73 billion.
Sands’ Macau properties generated $631 million in adjusted property earnings before interest, taxes, depreciation, and amortization, while Marina Bay Sands contributed $491 million.
“We were pleased to see the recovery in travel and tourism spending in both Macao and Singapore progress during the quarter. We remain deeply enthusiastic about our opportunities for growth in both markets in the years ahead,” said CEO Rob Goldstein in a statement.
Goldstein also highlighted the continued improvement of Sands China’s gaming and non-gaming offerings in Macau.
More Shareholder Rewards from Las Vegas Sands
Following the restart of its dividend in July after a three-year suspension, Las Vegas Sands has now announced a $2 billion share repurchase program. This move demonstrates the company’s commitment to rewarding shareholders.
“On October 16, 2023, the company’s Board of Directors authorized increasing the amount of its outstanding common stock authorized to be repurchased from $916 million to $2.0 billion and extending the expiration date of this authorization to November 3, 2025,” according to the statement. “The company intends to resume its share repurchase program in the fourth quarter of 2023.”
If Sands fulfills the buyback announcement, it would retire 17.13 million of its 764.25 million outstanding shares, based on today’s closing price of $44.60.
Sands Balance Sheet in Decent Shape
With $5.57 billion in cash on hand and access to $4.17 billion on a revolving credit facility, Las Vegas Sands has one of the strongest cash positions in the gaming industry. Its debt as of September 30 stood at $14.17 billion.
This healthy balance sheet not only enables Sands to sustain or grow its dividend but also provides ample funding for the share repurchase scheme and potential growth initiatives without having to rely on credit markets.