Wynn Resorts, Earnings Wynner! (WYNN, LVS, MPEL)

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Wynn Resorts, Ltd. (NASDAQ:WYNN) posted earnings of $0.82 GAAP EPS on revenues of $687.5 million  First Call had estimates at $0.53 EPS and almost $604 million revenues.  Year over year results are hard to count comparably because Wynn Macau wasn’t open this last quarter in 2006.  Adjusted earnings were $0.92 EPS.

They are showing they aren’t just about the spread in gambling too.  Check these numbers out: Gross non-casino revenues for the quarter were $211.2 million, a 7.5% increase from the second quarter of 2006. Hotel revenues were up 7.6% to $74.4 million during the quarter, versus $69.2 million in the second quarter of 2006. Wynn Las Vegas achieved an Average Daily Rate (ADR) of $311 for the quarter, compared to $293 in the second quarter of 2006. The property’s occupancy was 97.0%, compared to 95.7% during the prior year period, generating revenue per available room (REVPAR) of $301 in the 2007 period (7.4% higher than in 2006).  Food and beverage revenues increased 5.7% to $82.1 million in the quarter, compared to $77.7 million in the second quarter of 2006. Retail revenues were $22.9 million in the quarter, compared to $19.3 million in the second quarter of 2006, an increase of 18.7%. Entertainment revenues were approximately $18.7 million, compared to $17.1 million in the second quarter of 2006 as Avenue Q closed in May 2006.

Wynn is also outlining its Encore property adjacent to the Wynn Las Vegas, abd it is going to be a big one: 20 acres on the Las Vegas Strip adjacent to Wynn Las Vegas, 2,034 all-suite hotel tower fully integrated with Wynn Las Vegas, 72,000 square foot casino, additional convention and meeting space, more restaurants, a nightclub, swimming pools, a spa and salon and retail outlets. Encore is expected to open in early 2009 and the project budget is currently estimated at approximately $2.2 billion all inclusive.  Its Macau operations are still growing as well since it decided to roll that operation out more gradually and will include another 20,000 square feet of gaming space.

After a recent convertible debt redemption, $224.1 million debt converted to equity and deferred financing was reduced by $5.2 million.  Wynn isn’t usually big on giving exact guidance since so much is unknown until the very end of a quarter, but shareholders don’t seem to care.  Shares are up some 9% at $117.00+ in after-hours trading, and that is after a 6.2% gain in regular trading.  If this holds, that will mark a new high over the prior $114.60 high.

Elsewhere, shares of Melco PBL Entertainment (NASDAQ:MPEL) is seeing shares up over 3% after-hours to $13.10 and Las Vegas Sands (NYSE:LVS) shares are up almost 3% after-hours.

Jon C. Ogg
August 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.