Published on: October 23, 2024, 05:08h.
Last updated on: October 23, 2024, 05:08h.
Las Vegas Sands (NYSE: LVS) is enhancing shareholder rewards by increasing its quarterly dividend and launching a significant share repurchase program.
Along with the third-quarter results, the company announced that it is raising its quarterly dividend to 25 cents per share from 20 cents, marking the first increase since reinstating the dividend in August 2023.
We look forward to utilizing our share repurchase and dividend programs to continue to return excess capital to stockholders,” said CEO Robert Goldstein in a statement.
Moody’s Investors Service recently noted that Sands has the cash flow to support its dividend, with the company’s Sands China arm expected to reinstate its payout next year.
Las Vegas Sands Extends Buyback Program
The company’s new $2 billion share repurchase program is significant given that it had announced a similarly sized plan last year.
During the third quarter, the Venetian Macau operator repurchased $450 million worth of its stock, which proved to be a strategic move as the stock rallied at the end of the quarter after China implemented stimulus measures.
“Our financial strength and cash flow support our investment programs and capital expenditure in Macao and Singapore, as well as initiatives for growth and returning capital to shareholders,” added Goldstein.
Sands’ expansion of its buyback program coincides with other gaming companies utilizing share repurchases to reward investors.
Sands Earnings Fall Short of Expectations
Third-quarter results were impacted by low hold on rolling play in both Macau and Singapore, with the company reporting earnings of 44 cents per share on revenue of $2.68 billion, missing analyst estimates.
“Operating income was $504 million, compared to $688 million in the previous year quarter. Net income in the third quarter of 2024 was $353 million, compared to $449 million in the third quarter of 2023,” according to the company.
Sands had $4.21 billion in cash at the end of the quarter and access to $4.47 billion in borrowing capacity.