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Wynn Resorts (WYNN) Q1 Earnings & Revenues Top, Stock Up
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Shares of Wynn Resorts Ltd. (WYNN - Free Report) increased over 4% in after-hours trading on Apr 25, after the company reported better-than-expected first-quarter 2017 results.
Earnings and Revenues Discussion
Adjusted earnings of $1.24 per share surpassed the Zacks Consensus Estimate of 74 cents by 67.6%. Further, earnings increased 15.9% from the year-ago figure of $1.07 mainly due to higher revenues.
Wynn Resorts’ revenues of $1.48 billion topped the Zacks Consensus Estimate of $1.34 billion by 10.4%. Moreover, revenues increased 47.9% on the back of higher revenues from Wynn Palace along with favorable performance by the company’s Las Vegas Operations, partly offset by lower revenues from Wynn Macau.
Adjusted property earnings before interests, taxes, depreciation and amortization (EBITDA) surged 42.4% to $427.5 million year over year on higher revenues from Wynn palace and its Las Vegas Operations.
Meanwhile, total operating costs and expenses increased 46.0% to around $1.23 billion primarily owing to a rise in casino, rooms, food and beverage, entertainment, retail and other, property charges as well as general and administrative expenses.
Macau Operations
Wynn Resorts reports its Macau table games results under two segments – VIP and mass market.
Wynn Macau
Wynn Macau revenues decreased 3.5% year over year to $587 million in the quarter due to lower casino and non-casino revenues.
Notably, casino revenues from Macau operations declined 2.9% to $554.9 million. Meanwhile, table games turnover in the VIP segment fell 1.4% to $13.28 billion. But the VIP table games win rate (based on turnover) was 3.30%, up 49 basis points (bps) and above the projected range of 2.7% to 3%.
Table drop in the mass market segment was $1.14 billion, down 6%. Table games win in the mass market category amounted to $212.9 million, down 14%. Moreover, mass market win rate was 18.7%, down 180 bps.
Non-casino revenues before promotional allowances tanked 15.5% to $64.9 million. Meanwhile, room revenues decreased 16.1% to $25.5 million. Revenue per available room (RevPAR) plunged 17.3% in the quarter to $254 million as average daily rate (ADR) declined 18.2%. However, occupancy rate increased 90 bps to 95.7%.
In the quarter, adjusted property EBITDA was $181.1 million, down 5.3% year over year.
Wynn Palace
On Aug 22, 2016, Wynn Resorts’ Chairman of the Board and Chief Executive Officer, Steve Wynn, unveiled the Wynn Palace resort in the Cotai area of Macau. Thus, the first quarter of 2017 represents the second full quarter of operations for this resort.
Wynn Resorts’ revenues from Wynn Palace were $475.8 million in the quarter, while casino revenues totaled to $430 million.
Meanwhile, table games turnover in the VIP segment was nearly $11.04 billion and VIP table games win rate (based on turnover) was 3.03%, slightly above the expected range of 2.7–3%.
While table drop in the mass market segment was $770 million, table games win amounted to $167.6 million and mass market win rate was 21.8%.
In fact, total non-casino revenues, before promotional allowances were $85.6 million. During the quarter, room revenues were $39.8 million with an ADR of $258 million, occupancy of 95.6% and REVPAR of $246 million. In the quarter, adjusted property EBITDA stood at $111.9 million.
Las Vegas Operations
Wynn Resorts’ revenues from Las Vegas operations were up 6% to $412.9 million due to higher casino and non-casino revenues. Notably, casino revenues from Las Vegas operations inched up 3.3% to $166.3 million. Meanwhile, table games win percentage was 28.5%, up 220 bps and above management’s guidance range of 21–25%.
Total non-casino revenues, before promotional allowances, increased 5.2% to $285.5 million year over year. Room revenues were up 9.3% to $115 million. During the quarter, RevPAR grew 10.7% to $269 million on the back of a 380 bps increase in occupancy rate and a 5.7% rise in ADR. In the quarter, adjusted property EBITDA was up 23.4% to $134.6 million.
Wynn Resorts, Limited Price, Consensus and EPS Surprise
Wynn Resorts presently has a Zacks Rank #3 (Hold). Better-ranked stocks in the sector include Boyd Gaming Corporation (BYD - Free Report) , Century Casinos, Inc. (CNTY - Free Report) and Penn National Gaming, Inc. (PENN - Free Report) . While Boyd Gaming and Century Casinos sport a Zacks Rank #1 (Strong Buy), Penn National Gaming holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boyd Gaming’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 14.27%. Further, for 2017, EPS is anticipated to increase 24.8%.
The Zacks Consensus Estimate for Century Casinos’ 2017 earnings climbed 27.3% over the last 60 days. Further, for 2017, EPS is projected to increase 47.4%.
The Zacks Consensus Estimate for Penn National Gaming’s 2017 earnings climbed 45%, over the past 60 days. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 67.45%.
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Wynn Resorts (WYNN) Q1 Earnings & Revenues Top, Stock Up
Shares of Wynn Resorts Ltd. (WYNN - Free Report) increased over 4% in after-hours trading on Apr 25, after the company reported better-than-expected first-quarter 2017 results.
Earnings and Revenues Discussion
Adjusted earnings of $1.24 per share surpassed the Zacks Consensus Estimate of 74 cents by 67.6%. Further, earnings increased 15.9% from the year-ago figure of $1.07 mainly due to higher revenues.
Wynn Resorts’ revenues of $1.48 billion topped the Zacks Consensus Estimate of $1.34 billion by 10.4%. Moreover, revenues increased 47.9% on the back of higher revenues from Wynn Palace along with favorable performance by the company’s Las Vegas Operations, partly offset by lower revenues from Wynn Macau.
Adjusted property earnings before interests, taxes, depreciation and amortization (EBITDA) surged 42.4% to $427.5 million year over year on higher revenues from Wynn palace and its Las Vegas Operations.
Meanwhile, total operating costs and expenses increased 46.0% to around $1.23 billion primarily owing to a rise in casino, rooms, food and beverage, entertainment, retail and other, property charges as well as general and administrative expenses.
Macau Operations
Wynn Resorts reports its Macau table games results under two segments – VIP and mass market.
Wynn Macau
Wynn Macau revenues decreased 3.5% year over year to $587 million in the quarter due to lower casino and non-casino revenues.
Notably, casino revenues from Macau operations declined 2.9% to $554.9 million. Meanwhile, table games turnover in the VIP segment fell 1.4% to $13.28 billion. But the VIP table games win rate (based on turnover) was 3.30%, up 49 basis points (bps) and above the projected range of 2.7% to 3%.
Table drop in the mass market segment was $1.14 billion, down 6%. Table games win in the mass market category amounted to $212.9 million, down 14%. Moreover, mass market win rate was 18.7%, down 180 bps.
Non-casino revenues before promotional allowances tanked 15.5% to $64.9 million. Meanwhile, room revenues decreased 16.1% to $25.5 million. Revenue per available room (RevPAR) plunged 17.3% in the quarter to $254 million as average daily rate (ADR) declined 18.2%. However, occupancy rate increased 90 bps to 95.7%.
In the quarter, adjusted property EBITDA was $181.1 million, down 5.3% year over year.
Wynn Palace
On Aug 22, 2016, Wynn Resorts’ Chairman of the Board and Chief Executive Officer, Steve Wynn, unveiled the Wynn Palace resort in the Cotai area of Macau. Thus, the first quarter of 2017 represents the second full quarter of operations for this resort.
Wynn Resorts’ revenues from Wynn Palace were $475.8 million in the quarter, while casino revenues totaled to $430 million.
Meanwhile, table games turnover in the VIP segment was nearly $11.04 billion and VIP table games win rate (based on turnover) was 3.03%, slightly above the expected range of 2.7–3%.
While table drop in the mass market segment was $770 million, table games win amounted to $167.6 million and mass market win rate was 21.8%.
In fact, total non-casino revenues, before promotional allowances were $85.6 million. During the quarter, room revenues were $39.8 million with an ADR of $258 million, occupancy of 95.6% and REVPAR of $246 million. In the quarter, adjusted property EBITDA stood at $111.9 million.
Las Vegas Operations
Wynn Resorts’ revenues from Las Vegas operations were up 6% to $412.9 million due to higher casino and non-casino revenues. Notably, casino revenues from Las Vegas operations inched up 3.3% to $166.3 million. Meanwhile, table games win percentage was 28.5%, up 220 bps and above management’s guidance range of 21–25%.
Total non-casino revenues, before promotional allowances, increased 5.2% to $285.5 million year over year. Room revenues were up 9.3% to $115 million. During the quarter, RevPAR grew 10.7% to $269 million on the back of a 380 bps increase in occupancy rate and a 5.7% rise in ADR. In the quarter, adjusted property EBITDA was up 23.4% to $134.6 million.
Wynn Resorts, Limited Price, Consensus and EPS Surprise
Wynn Resorts, Limited Price, Consensus and EPS Surprise | Wynn Resorts, Limited Quote
Zacks Rank & Stocks to Consider
Wynn Resorts presently has a Zacks Rank #3 (Hold). Better-ranked stocks in the sector include Boyd Gaming Corporation (BYD - Free Report) , Century Casinos, Inc. (CNTY - Free Report) and Penn National Gaming, Inc. (PENN - Free Report) . While Boyd Gaming and Century Casinos sport a Zacks Rank #1 (Strong Buy), Penn National Gaming holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boyd Gaming’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 14.27%. Further, for 2017, EPS is anticipated to increase 24.8%.
The Zacks Consensus Estimate for Century Casinos’ 2017 earnings climbed 27.3% over the last 60 days. Further, for 2017, EPS is projected to increase 47.4%.
The Zacks Consensus Estimate for Penn National Gaming’s 2017 earnings climbed 45%, over the past 60 days. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 67.45%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>