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Dismal Visitation to Hurt Wynn Resorts' (WYNN) Q1 Earnings

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Wynn Resorts, Limited (WYNN - Free Report) is likely to report decline in earnings, when the company reports first-quarter 20201 results. In the last reported quarter, the company delivered a negative earnings surprise of 10.4%. The company missed earnings estimates in each of the trailing four quarters, the average negative surprise being 96.3%.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter bottom line is pegged at a loss of $2.00 per share. Notably, the company had reported a loss of $3.54 in the prior-year quarter. The Zacks Consensus Estimate for revenues stands at $759.8 million, indicating a decline of 20.3% from the year-ago reported figure.

Factors to Note

Wynn Resorts first-quarter results are likely to reflect the impact of the coronavirus pandemic on its operations. The company is likely to witness sequential improvement in top line as the casinos are now open and is witnessing improvement in visitations. Although visitations are likely to have improved sequentially its is still well below the pre-pandemic level. In fourth-quarter 2020, the bottom line was hurt by operating loss at Encore Boston Harbor, Wynn Palace, Wynn Macau, Las Vegas operations and Encore Boston Harbor. This was due to the negative impact of the coronavirus pandemic, which hurt visitation. Moreover, cash burn on account of the coronavirus might have weighed on the to-be-reported quarter’s performance.

Wynn Resorts, Limited Price and EPS Surprise

Wynn Resorts, Limited Price and EPS Surprise

Wynn Resorts, Limited price-eps-surprise | Wynn Resorts, Limited Quote

However, the company may have benefited from robust demand for sports betting. Notably, WynnBet sports betting and online casino application was operational in New Jersey for quite some time. During the fourth quarter, the company launched WynnBet online sports and casino offerings in Colorado and Michigan. It also secured market access in Indiana, Iowa and Ohio and received conditional licensing in Tennessee. Consequently, robust sports betting demand is likely to have contributed to the company’s first-quarter top line.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Wynn Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Wynn Resorts has an Earnings ESP of -2.08% and a Zacks Rank #3.

Stocks With Favorable Combinations

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.

Boyd Gaming Corporation (BYD - Free Report) has a Zacks Rank #3 and an Earnings ESP of +5.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Choice Hotels International, Inc. (CHH - Free Report) has a Zacks Rank #3 and an Earnings ESP of +17.47%.

Caesars Entertainment, Inc. (CZR - Free Report) has a Zacks Rank #3 and an Earnings ESP of +9.32%.

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