Vegas Sands Surpasses Third-Quarter Revenue Forecasts, Endorses $2 Billion Repurchase
Operating through its Macau casino hotels and the Marina Bay Sands in Singapore, Las Vegas Sands (NYSE: LVS) surpassed analyst expectations with third-quarter revenue.
Following the closure of US markets today, the company announced earnings of 55 cents per share on sales of $2.8 billion from July to September. Experts had expected 55 cents in earnings and $2.73 billion in revenue. Despite the modest top-line beat, it's notable considering some Macau casinos were temporarily closed due to a typhoon.
The five Macau integrated resorts posted a combined third-quarter adjusted property EBITDA of $631 million, while Marina Bay Sands contributed $491 million.
"We were happy to witness the recovery in travel and tourism expenditure in both Macao and Singapore during the quarter," stated CEO Rob Goldstein. "We remain highly optimistic about our growth prospects in both markets going forward."
Goldstein mentioned that in Macau, Sands China's gaming and non-gaming offerings continued to show signs of improvement in the September quarter.
Additional Shareholder Rewards from Las Vegas Sands
With its Q2 earnings report in July, Sands shocked investors by reinstating its dividend after a more than three-year hiatus.
Today, the company continued the theme of shareholder rewards, announcing that its board had approved a $2 billion share repurchase program.
"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," reads the statement. "The company intends to resume its share repurchase program in the fourth quarter of 2023."
Although not mandated to do so, if Sands follows through completely on this plan, it would retire 17.13 million of its outstanding 764.25 million shares with a closing price of $44.60 per share.
Las Vegas Sands' Healthy Balance Sheet
Ending the third quarter with $5.57 billion in cash, Las Vegas Sands has one of the largest cash reserves in the gaming industry. The operator also has access to $4.17 billion in a revolving credit facility. Its debt stood at $14.17 billion as of 30 September.
This sizable cash stockpile is significant for investors as it confirms Sands can maintain or potentially boost its dividend and easily execute the announced share repurchase. Additionally, the healthy cash reserve sets up the company to pursue expansion opportunities or upgrade existing venues without needing to tap the credit markets at a time of high-interest rates.
Read also:
- Leipzig battles for top attacker Sesko.
- Fortuna determines to face relegation head-on.
- The insanely adventurous cycling route in Germany poses growing risks.
- Söder explores Rome with selfies.
Source: www.casino.org
