2023-07-19 17:07:42 ET
Las Vegas Sands ( NYSE: LVS ) beat earnings estimates, but that wasn’t good enough for investors as shares fell 4% postmarket with a still-weak Macau market.
The casino company also restarted its dividend at $0.20 per common share to be paid on August 16. LVS reported Q2 Non-GAAP EPS of $0.46 versus the estimate of $0.43. Revenue for the quarter totaled $2.54B, up 142% year-over-year and beating the consensus by $160M.
Visitation to Macau reached about 6.7 million people in the quarter, which is approximately 68% of the 9.9 million visitations in the second quarter of 2019, the last comparable quarter prior to the pandemic.
“We remain enthusiastic about the opportunity to welcome more guests back to our properties throughout the remainder of 2023 and in the years ahead," Chief Executive Officer Robert G. Goldstein said in a statement. “In Macau, we were pleased to see the ongoing recovery now underway in all gaming and non-gaming segments progress during the quarter.”
LVS is “the best way to play Macau and one of the final consumer recovery stories coming out of Covid,” Morgan Stanley said, calling it a top pick among casino and gaming companies.
The casino group invested $2B in two Macau properties during the pandemic, Morgan Stanley noted in a July 13 report.
“LVS’s other major property in Singapore continues to generate positive trends while also boasting a pristine balance sheet (<1x 2024 Net Debt/EBITDA) and ~$6.5B of cash at the end of 1Q23,” the firm said.
LVS said today it sees recovery in travel and tourism spending from China and the wider region continuing.
“Our financial strength supports our ongoing investment and capital expenditure programs in both Macau and Singapore, our pursuit of growth opportunities in new markets, and the return of capital to stockholders,” the CEO said.
Shares of LVS are up 19% year-to-date.
More on casino and gaming companies:
- Macau casino revenue is tipped by Roth MKM to impress this summer
- Las Vegas Sands is the top gaming pick at Morgan Stanley
- Macau casino revenue in June misses estimates and dips sequentially
For further details see:
Las Vegas Sands slides even after beating Q2 estimates, announcing dividend