WIll Wynn Resorts Ever Get Earnings Right?
ThinkstockWynn Resorts Ltd. (NASDAQ: WYNN) released its third quarter earnings after markets closed on Thursday. The company had $0.86 in earnings per share (EPS) on $996 million in revenue compared to consensus estimates from Thomson Reuters that call for $0.88…
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Wynn Resorts Ltd. (NASDAQ: WYNN) released its third quarter earnings after markets closed on Thursday. The company had $0.86 in earnings per share (EPS) on $996 million in revenue compared to consensus estimates from Thomson Reuters that call for $0.88 in EPS on $1.03 billion in revenue. The same period from the previous year had $1.95 in EPS on $1.37 billion in revenue.
In the third quarter of 2015, net revenues from Macau operations were $585.1 million, a 37.9% decrease from the $942.3 million generated in the third quarter of 2014. At the same time, net revenues for Las Vegas operations were $411.2 million, a 3.9% decrease from $427.8 million in the same period from the previous year.
In Macau slot machine handle for the third quarter of 2015 declined 42.6% from the 2014 period to $824.6 million, and slot win decreased by 43.0% to $41.9 million.
Wynn also approved a cash dividend of $0.50 per common share, which will be payable on November 24, to stockholders of record on November 12.
The company is currently constructing Wynn Palace, an integrated resort containing a 1,700-room hotel, a performance lake, meeting space, a casino, a spa, retail offerings, and food-and-beverage outlets in the Cotai area of Macau. In July 2013, Wynn signed a $2.6 billion guaranteed maximum price (GMP) contract for the project’s construction costs. The total project budget, including construction costs, capitalized interest, pre-opening expenses, land costs and financing fees, is approximately $4.1 billion. The resort on Cotai is expected to open in the first half of 2016.
Separately, Wynn was awarded a gaming license to develop and construct an integrated resort in Everett, MA (outside of Boston). The resort will be located on a 33 acre site along the Mystic River. The resort will contain a hotel, a waterfront boardwalk, meeting space, a casino, a spa, retail offerings, and food-and-beverage outlets.
At the end of the quarter, cash, equivalents and investment securities totaled $2.1 billion.
Shares of Wynn closed Thursday up 1.9% at $73.76, with a consensus analyst price target of $94.47 and a 52-week trading range of $50.96 to $192.45. Following the release of the earnings report, shares were down 2.1% at $72.23 in the after-hours trading session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
