Wynn Resorts Craps Out on Earnings
When Wynn Resorts Ltd. (NASDAQ: WYNN) released its third-quarter financial results after the markets closed on Wednesday, the company said that it had $1.68 in earnings per share (EPS) and $1.71 billion in revenue. That compared with consensus estimates of $1.77 in EPS and $1.64 billion in revenue, as well as the $1.52 per share and $1.55 billion posted in the same period of last year.
During the latest quarter, operating revenues from Wynn Palace were $730.6 million, a 39.1% increase from $525.0 million for the same period of 2017. Separately, operating revenues from Wynn Macau were $579.6 million, a 3.1% increase from $562.0 million. Operating revenues from Las Vegas Operations were $398.9 million for the third quarter of 2018, a 14.1% decrease from $464.3 million.
In terms of the segment revenue breakdown, the company saw:
- Casino revenues increased 13.6% year over year to $1.22 billion.
- Rooms revenues increased 7.4% to $183.0 million.
- Food and Beverage revenues decreased 3.1% to $193.9 million.
- Entertainment, retail and other revenues increased 4.5% to $110.1 million.
On the earnings call, the company announced that it will not be going through with its plans for an artificial lake that would have taken the place of its 18-hole golf course. At the size of nearly 100 Olympic swimming pools, the lagoon plan was pitched in 2016 as a more conservative use of water for the company’s Wynn and Encore casino-resorts complex on the Strip.
Wynn Resorts also said Wednesday that casino industry veteran Phil Satre has been named chair of its board of directors, replacing D. Boone Wayson. The appointment is part of a previously announced agreement between the company and its largest shareholder.
Shares of Wynn were last seen down 13% at $99.45, with a consensus analyst price target of $169.13 and a 52-week trading range of $92.50 to $203.63.