Las Vegas Sands Disappoints on China, Destination Gaming Weakness

Dow Jones
2 hours ago

Shares of casino company Las Vegas Sands fell 2% in after-hours trading after the hotelier missed analyst expectations for both revenue and earnings per share. The weakness is tied to consumer softness in China, where most of the chain’s resorts are located, as well as broader negativity around the destination gaming sector amid higher travel costs.

The chain reported adjusted earnings of 54 cents a share, well below estimates of 68 cents, and down 31% from the same period last year. Net revenue also came up short at $3.216 billion, below estimates of $3.329 billion and down 3.4% from the same period in 2025.

Despite its name, most of Las Vegas Sands’ revenue comes from its resorts in Macao, China, with the rest coming from Marina Bay Sands in Singapore. (The chain sold its hotels in Las Vegas back in 2022 to Apollo Management and VICI Properties for $6.25 billion.)

Its China-centric business is a problem as ongoing consumer weakness there weighs on earnings. Retail sales in China rose just 1.1% on a year over year basis in September versus U.S. retail growth of more than 6% over the same period. Revenue at its Venetian Macao resort, once its biggest cash cow, fell from $692 million a year ago to $649 million during the quarter ending in September.

The company didn’t provide any forward guidance for earnings, but did announce a 20% increase in its quarterly dividend, bringing it to 36 cents a share starting in 2027.

Shares have fallen 42% this year among broader sector weakness which has also affected rival Wynn Resorts, which also has hotels in Macao and has fallen 37% this year.

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