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Is Wynn Resorts (WYNN) Likely to Beat Q1 Earnings Estimates?
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Wynn Resorts, Limited (WYNN - Free Report) is slated to report first-quarter 2017 numbers on Apr 25, after market close. We expect the casino operator to beat expectations.
In the last reported quarter, Wynn Resorts posted a 25.37% negative earnings surprise. However, the trailing four-quarter average earnings surprise is pegged at a positive 2.20%.
Let’s see how things are shaping up for this announcement.
Our proven model shows that Wynn Resorts is likely to beat on earnings because it has the perfect combination of the two key ingredients.
Zacks ESP: Wynn Resorts has an Earnings ESP of +5.41%. This is because the Most Accurate estimate is 78 cents, while the Zacks Consensus Estimate is pegged lower at 74 cents. A favorable Earnings ESP serves as a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Wynn Resorts currently carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Conversely, we caution you against sell-rated stocks (Zacks Rank #4 or 5) that should never be considered going into an earnings announcement.
The combination of Wynn Resorts’ favorable Zacks Rank and positive Earnings ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-than-Expected Earnings?
Per the Macau Gaming Inspection and Coordination Bureau, gross gaming revenues (GGR) rose in all the three months of the quarter, thereby continuing the revival in Macao.
Thus, we expect the company’s consistent efforts to boost tourism and traffic in Macau to bolster first quarter performance aided by the improved operating environment therein. We believe, new resort addition and provision of better non-gaming options should further propel first-quarter results.
Particularly, the opening of Wynn Resorts’ Wynn Palace (on Aug 22, 2016), continues to attract visits by tourists and leisure gamblers, and should thus scoop up the quarter’s revenues.
Meanwhile, the company’s properties in Las Vegas are likely to continue to cash in on the positive trends of improving employment rate and increasing tourism numbers in the region, thereby boosting the to-be-reported quarter’s top- and bottom¬-line growth.
However, higher promotional allowances and distribution of higher incentives in the slots as well as in the mass market to hold market share might hamper the quarter’s profitability. In fact, first-quarter results may also be somewhat hampered as concerns related to the sustainability of revenues from the VIP market linger.
Other Stocks to Consider
Wynn Resorts is not the only company looking up this earnings season. Here are some other companies to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
Churchill Downs Incorporated (CHDN - Free Report) has an Earnings ESP of +13.73% and a Zacks Rank #3.
Las Vegas Sands Corp. (LVS - Free Report) has an Earnings ESP of +5.41% and a Zacks Rank #3.
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Is Wynn Resorts (WYNN) Likely to Beat Q1 Earnings Estimates?
Wynn Resorts, Limited (WYNN - Free Report) is slated to report first-quarter 2017 numbers on Apr 25, after market close. We expect the casino operator to beat expectations.
In the last reported quarter, Wynn Resorts posted a 25.37% negative earnings surprise. However, the trailing four-quarter average earnings surprise is pegged at a positive 2.20%.
Let’s see how things are shaping up for this announcement.
Wynn Resorts, Limited Price and EPS Surprise
Wynn Resorts, Limited Price and EPS Surprise | Wynn Resorts, Limited Quote
Why a Likely Positive Surprise?
Our proven model shows that Wynn Resorts is likely to beat on earnings because it has the perfect combination of the two key ingredients.
Zacks ESP: Wynn Resorts has an Earnings ESP of +5.41%. This is because the Most Accurate estimate is 78 cents, while the Zacks Consensus Estimate is pegged lower at 74 cents. A favorable Earnings ESP serves as a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Wynn Resorts currently carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Conversely, we caution you against sell-rated stocks (Zacks Rank #4 or 5) that should never be considered going into an earnings announcement.
The combination of Wynn Resorts’ favorable Zacks Rank and positive Earnings ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-than-Expected Earnings?
Per the Macau Gaming Inspection and Coordination Bureau, gross gaming revenues (GGR) rose in all the three months of the quarter, thereby continuing the revival in Macao.
Thus, we expect the company’s consistent efforts to boost tourism and traffic in Macau to bolster first quarter performance aided by the improved operating environment therein. We believe, new resort addition and provision of better non-gaming options should further propel first-quarter results.
Particularly, the opening of Wynn Resorts’ Wynn Palace (on Aug 22, 2016), continues to attract visits by tourists and leisure gamblers, and should thus scoop up the quarter’s revenues.
Meanwhile, the company’s properties in Las Vegas are likely to continue to cash in on the positive trends of improving employment rate and increasing tourism numbers in the region, thereby boosting the to-be-reported quarter’s top- and bottom¬-line growth.
However, higher promotional allowances and distribution of higher incentives in the slots as well as in the mass market to hold market share might hamper the quarter’s profitability. In fact, first-quarter results may also be somewhat hampered as concerns related to the sustainability of revenues from the VIP market linger.
Other Stocks to Consider
Wynn Resorts is not the only company looking up this earnings season. Here are some other companies to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Churchill Downs Incorporated (CHDN - Free Report) has an Earnings ESP of +13.73% and a Zacks Rank #3.
Las Vegas Sands Corp. (LVS - Free Report) has an Earnings ESP of +5.41% and a Zacks Rank #3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>