LVS Q2 Misses on Low Macao Hold; Buyback and Macau Rebound in Focus
Q2 earnings miss on low Macao hold LVS missed second-quarter estimates: revenue $3.15 billion and earnings of 59 cents a share, well below expectations. The company blamed unusually low rolling-play hold in Macao, which cut Macao EBITDA by $87 million. This weak result pushed the stock down about 6% and led analysts to cut estimates.
The earnings miss is the main new event that moved LVS and explains the period's weakness.
Buyback raised to $6 billion, dividend kept LVS repurchased $787 million of its own stock last quarter, pays a 30-cent quarterly dividend, and the board raised its buyback authorization to $6 billion through 2029. Buying back shares supports the stock price by reducing supply and signaling confidence.
This is a concrete new capital-return action that supports LVS shares despite the earnings miss.
Macau weak in July, but rebound expected Macau gaming revenue fell 8.4% in July from a year earlier, hurt by the World Cup and typhoons, with premium betting down 19%. Still, revenue rose 5.9% from June, and Jefferies expects growth in the third and fourth quarters on concerts and NBA China Games.
Macau is LVS's biggest market, so this monthly data shows near-term pressure but a likely rebound.
Company sticks to $700M Macau EBITDA goal Management reiterated its target of $700 million quarterly EBITDA in Macau over time, even though the latest quarter was only $430 million. It called the quarter unrepresentative due to low hold and World Cup travel dips. Marina Bay Sands expansion remains on track for early 2031.
This forward-looking guidance and expansion timeline give investors a reason to look past the weak quarter.