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Wynn Resorts (WYNN) Q3 Earnings & Revenues Miss Estimates
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Wynn Resorts, Limited (WYNN - Free Report) reported dismal third-quarter 2020 results, wherein earnings and revenues missed the Zacks Consensus Estimate for the fifth straight quarter. Moreover, the top and the bottom line declined on a year-over-year basis. Following the results, shares of the company declined 3.6% during after-hour trading session on Nov 5.
Q3 Earnings and Revenues
The company reported an adjusted loss of $7.04 per share, wider than the Zacks Consensus Estimate of a loss of $3.32. In the prior-year quarter, the company had reported adjusted earnings per share of 17 cents per share.
Revenues during the third quarter came in at $370.5 million, missing the Zacks Consensus Estimate of $460 million. The top line also declined 77.5% year over year owing to dismal performance by Wynn Palace, Wynn Macau and Las Vegas operations.
Wynn Resorts, Limited Price, Consensus and EPS Surprise
During the third quarter, revenues from Wynn Palace totaled $15.7 million in the third quarter, down 97.4% year over year. Casino revenues were $12.3 million, down 97.5% year over year. Rooms; food and beverage; and entertainment, retail and other revenues also declined 90%, 77.3%, 131.4%, to $4.5 million, $6.9 million and ($8) million, respectively.
At the VIP segment, table games turnover was $311.7 million, down 97% year over year. VIP table games win rate (based on turnover) was 1.04%, below the expected range of 2.7-3%. It was also lower than 3.19% witnessed in the year-ago quarter. Table drop at the mass market segment was $86.3 million, down 93.4% from the year-ago quarter. Furthermore, table games win in mass market operations amounted to $19 million, down 94.1% year over year.
Notably, average daily rate (ADR) was $225 (down 17.6%, year over year). Occupancy was 11.6% (compared with 97.2% reported in the prior-year quarter). Meanwhile, revenue per available room (RevPAR) came in at $26 (down 90.2%, year over year).
Wynn Macau Operations
During the third quarter, Wynn Macau revenues were down 89.2% year over year to $51.4 million. The downside was due to a decline in casino, rooms, food and beverage, and entertainment, retail and other revenues.
Notably, casino revenues in the reported quarter plunged 93.4% to $27.2 million. Rooms; food and beverage; and entertainment, retail and other revenues declined 81.5%, 71.4% and 28.6%, to $4.9 million, $5.6 and $13.7 million, respectively.
Table games turnover at the VIP segment declined 93.8% to $498.5 million. However, the VIP table games win rate (based on turnover) was 3.95%, higher than expected range of 2.7% to 3.0%. It was also higher than 2.76% reported in the prior-year quarter.
Table drop at the mass market segment was $133 million, down 89.9% year over year. Table games win in the mass market category was $24.9 million, down 90.9%.
Notably, ADR was $291 (up 2.8%, year over year). Meanwhile, occupancy was 16.6% compared with 99.4% in the prior-year quarter. RevPAR was $48, down 82.9%, year over year.
Las Vegas Operations
During the third quarter, revenues from Las Vegas operations were down 53.3% year over year to $186.7 million due to weak occupancy levels.
Casino and food and beverage revenues plunged 24.5% and 63.2% to $65.7 million and $55 million, respectively. Rooms and entertainment, retail and other revenues also decreased 61.3% and 55.1% to $45 million and $21 million, respectively.
Further, table games drop fell 24.6% to $324.9 million. Meanwhile, table games win witnessed a decline of 23.5% year over year to $65.6 million. During the third quarter, table games win percentage of 20.2% was below the projected range of 22-26% but above 19.9% reported in the prior year quarter.
During the reported quarter, RevPAR declined 61% year over year to $105. Occupancy rate was 39.2%, down from 87.9% from the prior-year period. ADR was $269, down 12.1% year over year.
Encore Boston Harbor
Encore Boston Harbor closed all operations on Mar 15 for remainder of the first quarter and second-quarter 2020. On Jul 10, Encore Boston Harbor reopened operations. Adjusted property EBITDA from Encore Boston Harbor for third-quarter 2020 was $26 million.
Operating Performance
During the third quarter, adjusted property earnings before interests, taxes, depreciation and amortization (EBITDA) was ($65.9) million. In the prior-year quarter, the company had reported adjusted property EBITDA of $396.9 million.
In the quarter under review, adjusted property EBITDA from Macau totaled ($112.1) million against $301.2 million reported in the prior-year quarter. Adjusted property EBITDA from Las Vegas operations was $20.3 million, compared with $88.0 million in the prior-year quarter.
Cash Position
As of Sep 30, 2020, Wynn Resorts’ cash and cash equivalents totaled $3.55 billion.
Outstanding debt at the end of the third quarter amounted to $12.79 billion, including $3.12 billion of Wynn Las Vegas related debt, $5.96 billion of Macau debt, $3.10 billion of Wynn Resorts Finance debt, and $612.2 million of debt held by the retail joint venture, which the company consolidated.
Other Details
On the development front, Wynn Resorts has made significant progress with respect to Wynn Interactive. During the third quarter, the company launched online sports and casino offerings in New Jersey. It also secured market access in other states.
Apart from this, the company is applying for licenses on a standalone basis in Tennessee and Virginia. Markedly, it is on the lookout for potential partners regarding additional access agreements in other jurisdictions.
Zacks Rank & Key Picks
Wynn Resorts currently carries a Zacks Rank #5 (Strong Sell).
Monarch Casino’s 2021 earnings are expected to surge 179.3%.
YETI Holdings has a trailing four-quarter earnings surprise of 59.5%, on average.
Boyd Gaming has a three-five-year earnings per share growth rate of 12.1%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Wynn Resorts (WYNN) Q3 Earnings & Revenues Miss Estimates
Wynn Resorts, Limited (WYNN - Free Report) reported dismal third-quarter 2020 results, wherein earnings and revenues missed the Zacks Consensus Estimate for the fifth straight quarter. Moreover, the top and the bottom line declined on a year-over-year basis. Following the results, shares of the company declined 3.6% during after-hour trading session on Nov 5.
Q3 Earnings and Revenues
The company reported an adjusted loss of $7.04 per share, wider than the Zacks Consensus Estimate of a loss of $3.32. In the prior-year quarter, the company had reported adjusted earnings per share of 17 cents per share.
Revenues during the third quarter came in at $370.5 million, missing the Zacks Consensus Estimate of $460 million. The top line also declined 77.5% year over year owing to dismal performance by Wynn Palace, Wynn Macau and Las Vegas operations.
Wynn Resorts, Limited Price, Consensus and EPS Surprise
Wynn Resorts, Limited price-consensus-eps-surprise-chart | Wynn Resorts, Limited Quote
Wynn Palace Disappoints
During the third quarter, revenues from Wynn Palace totaled $15.7 million in the third quarter, down 97.4% year over year. Casino revenues were $12.3 million, down 97.5% year over year. Rooms; food and beverage; and entertainment, retail and other revenues also declined 90%, 77.3%, 131.4%, to $4.5 million, $6.9 million and ($8) million, respectively.
At the VIP segment, table games turnover was $311.7 million, down 97% year over year. VIP table games win rate (based on turnover) was 1.04%, below the expected range of 2.7-3%. It was also lower than 3.19% witnessed in the year-ago quarter. Table drop at the mass market segment was $86.3 million, down 93.4% from the year-ago quarter. Furthermore, table games win in mass market operations amounted to $19 million, down 94.1% year over year.
Notably, average daily rate (ADR) was $225 (down 17.6%, year over year). Occupancy was 11.6% (compared with 97.2% reported in the prior-year quarter). Meanwhile, revenue per available room (RevPAR) came in at $26 (down 90.2%, year over year).
Wynn Macau Operations
During the third quarter, Wynn Macau revenues were down 89.2% year over year to $51.4 million. The downside was due to a decline in casino, rooms, food and beverage, and entertainment, retail and other revenues.
Notably, casino revenues in the reported quarter plunged 93.4% to $27.2 million. Rooms; food and beverage; and entertainment, retail and other revenues declined 81.5%, 71.4% and 28.6%, to $4.9 million, $5.6 and $13.7 million, respectively.
Table games turnover at the VIP segment declined 93.8% to $498.5 million. However, the VIP table games win rate (based on turnover) was 3.95%, higher than expected range of 2.7% to 3.0%. It was also higher than 2.76% reported in the prior-year quarter.
Table drop at the mass market segment was $133 million, down 89.9% year over year. Table games win in the mass market category was $24.9 million, down 90.9%.
Notably, ADR was $291 (up 2.8%, year over year). Meanwhile, occupancy was 16.6% compared with 99.4% in the prior-year quarter. RevPAR was $48, down 82.9%, year over year.
Las Vegas Operations
During the third quarter, revenues from Las Vegas operations were down 53.3% year over year to $186.7 million due to weak occupancy levels.
Casino and food and beverage revenues plunged 24.5% and 63.2% to $65.7 million and $55 million, respectively. Rooms and entertainment, retail and other revenues also decreased 61.3% and 55.1% to $45 million and $21 million, respectively.
Further, table games drop fell 24.6% to $324.9 million. Meanwhile, table games win witnessed a decline of 23.5% year over year to $65.6 million. During the third quarter, table games win percentage of 20.2% was below the projected range of 22-26% but above 19.9% reported in the prior year quarter.
During the reported quarter, RevPAR declined 61% year over year to $105. Occupancy rate was 39.2%, down from 87.9% from the prior-year period. ADR was $269, down 12.1% year over year.
Encore Boston Harbor
Encore Boston Harbor closed all operations on Mar 15 for remainder of the first quarter and second-quarter 2020. On Jul 10, Encore Boston Harbor reopened operations. Adjusted property EBITDA from Encore Boston Harbor for third-quarter 2020 was $26 million.
Operating Performance
During the third quarter, adjusted property earnings before interests, taxes, depreciation and amortization (EBITDA) was ($65.9) million. In the prior-year quarter, the company had reported adjusted property EBITDA of $396.9 million.
In the quarter under review, adjusted property EBITDA from Macau totaled ($112.1) million against $301.2 million reported in the prior-year quarter. Adjusted property EBITDA from Las Vegas operations was $20.3 million, compared with $88.0 million in the prior-year quarter.
Cash Position
As of Sep 30, 2020, Wynn Resorts’ cash and cash equivalents totaled $3.55 billion.
Outstanding debt at the end of the third quarter amounted to $12.79 billion, including $3.12 billion of Wynn Las Vegas related debt, $5.96 billion of Macau debt, $3.10 billion of Wynn Resorts Finance debt, and $612.2 million of debt held by the retail joint venture, which the company consolidated.
Other Details
On the development front, Wynn Resorts has made significant progress with respect to Wynn Interactive. During the third quarter, the company launched online sports and casino offerings in New Jersey. It also secured market access in other states.
Apart from this, the company is applying for licenses on a standalone basis in Tennessee and Virginia. Markedly, it is on the lookout for potential partners regarding additional access agreements in other jurisdictions.
Zacks Rank & Key Picks
Wynn Resorts currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Consumer Discretionary sector are Monarch Casino & Resort, Inc. (MCRI - Free Report) , YETI Holdings, Inc. (YETI - Free Report) and Boyd Gaming Corporation (BYD - Free Report) . Monarch Casino sports a Zacks Rank #1 (Strong Buy), while YETI Holdings and Boyd Gaming carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Monarch Casino’s 2021 earnings are expected to surge 179.3%.
YETI Holdings has a trailing four-quarter earnings surprise of 59.5%, on average.
Boyd Gaming has a three-five-year earnings per share growth rate of 12.1%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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