Sands raises dividend 20%, shares fall after third-quarter results

Las Vegas Sands (NYSE: LVS) shares fell while trading after the company's third-quarter results came in below expectations. The company also announced a dividend increase the same day, but investors focused more on the results.

The company reported revenue of $3.22 billion and earnings of 54 cents per share for the July to September period. Market expectations were for $3.33 billion in revenue and 68 cents per share in earnings. Operations in Macau were decisive in the weak results. Sands China's revenue rose only 1.4% to $1.93 billion, while its net profit fell 29.8% year on year to $191 million.

The company set its 2027 dividend at $1.44 per share. This amounts to 36 cents on a quarterly basis and is 20% above current levels. Sands has raised the dividend three times since reinstating it in July 2023. At the end of the third quarter, the company had an unrestricted cash balance of $2.86 billion. During the period, it repurchased $950 million of shares.

Marina Bay Sands in Singapore also declined in the quarter. The property's revenue fell from $1.43 billion to $1.29 billion, and adjusted EBITDA dropped from $743 million to $590 million. Company chairman Patrick Dumont said he remains positive about growth prospects in Singapore and the ongoing expansion project.