No Laughs at Wynn Resorts

January 31, 2013 by Paul Ausick

Casino Entrance
Source: Thinkstock
Wynn Resorts Ltd. (NASDAQ: WYNN) reported fourth quarter and full year 2012 results after markets closed today. For the quarter, the casino and resort operator posted adjusted diluted earnings per share (EPS) of $1.17 on revenues of $1.29 billion. In the same period a year ago, the company reported EPS of $1.55 on revenues of $1.34 billion. Fourth-quarter results compare to the Thomson Reuters consensus estimates for EPS of $1.25 EPS and $1.27 billion in revenues.

For the full year, Wynn posted adjusted diluted EPS of $5.36 on revenues of $5.15 billion, compared with 2011 EPS of $5.58 on revenues of $5.27 billion. The consensus estimate called for for EPS of $2.44 on revenues of $5.14 billion.

On a GAAP basis, Wynn reported quarterly diluted EPS of $1.10 and full-year EPS of $4.82.

The company doubled its dividend from a quarterly rate of $0.50 per share to $1.00 per share, payable to shareholders of record as of February 14th.

Competitor Las Vegas Sands Inc. (NYSE: LVS) boosted its dividend by 40%, to $0.35 a share last night to help ease the pain of lighter earnings than analysts had been expecting. Wynn announced this increase last year. Las Vegas Sands got a share price boost of more than 7% today, but so far Wynn is not following suit in after-hours trading.

Wynn’s revenues fell nearly 10% in Macau, with the biggest drop coming from its VIP (high-roller) segment. Las Vegas revenues rose more than 12%, but Las Vegas revenues account for just 43% of the company’s total.

Wynn did not offer guidance in its earnings release, but the consensus estimate for the first quarter calls for EPS of $1.55 on revenues of $1.38 billion. For the full year the consensus estimate calls for EPS of $6.07 on revenues of $5.39 billion.

Shares are trading down about 1.2% at $123.75 in after-hours trading today, in a 52-week range of $90.11 to $138.28. Thomson Reuters had a consensus analyst price target of around $133.90 before today’s report.

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