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Wynn (WYNN) Up 3.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Wynn Resorts (WYNN - Free Report) . Shares have added about 3.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Wynn due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Wynn Resorts reported second-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Moreover, the top and the bottom line increased on a year-over-year basis.
Matt Maddox, CEO of Wynn Resorts, stated, "We were pleased to see the strong return of our guests at both Wynn Las Vegas and Encore Boston Harbor during the second quarter with Adjusted Property EBITDA at our U.S. operations well above pre-pandemic levels, highlighting the significant pent-up demand for travel and leisure experiences."
Q2 Earnings & Revenues
The company reported an adjusted loss of $1.12 per share, narrower than the Zacks Consensus Estimate of a loss of $1.41. In the prior-year quarter, the company had reported adjusted loss of $6.14 per share.
Revenues during the second quarter came in at $990.1 million, beating the Zacks Consensus Estimate of $938 million by 5.5%. In the prior-year quarter, the company reported revenues of $85.7 million. Notably, the company benefitted from solid contributions of Wynn Palace, Wynn Macau and Las Vegas operations.
Wynn Palace Operations
During the second quarter, Wynn Palace revenues came in at $270.4 million compared with $8.7 million in the prior-year quarter. Casino revenues in the reported quarter came in at $212.1 million against $(11.4) million reported in the prior-year quarter. Rooms and food and beverage revenues surged 759% and 226.3% year over year to $20.9 million and $13.8 million, respectively. During the quarter, entertainment, retail and other revenues rose 75.1% year over year to $23.6 million.
In the VIP segment, table games turnover was $1,811.4 million, up 5.3% year over year. VIP table games win rate (based on turnover) was 3.95%, higher than the expected range of 2.7-3%. Also, it was above (1.73)% reported in the prior-year quarter. Table drop at the mass market segment came in at $707.5 million compared with $22 million reported in the prior-year quarter. Furthermore, table games win in mass market operations amounted to $163.5 million compared with $7.2 million in the prior-year quarter.
During the reported quarter, RevPAR surged 746.7% year over year to $127. Occupancy levels in the segment moved up to 70.6% compared with 4.4% in the prior-year quarter. However, average daily rate (ADR) came in at $180, down 46.9% year over year.
Wynn Macau Operations
During the second quarter, Wynn Macau revenues came in at $184 million compared with $11.9 million in the prior-year quarter. The upside was primarily driven by a rise in casino, rooms, food and beverage as well as entertainment, retail and other revenues.
Casino revenues in the reported quarter came in at $142.4 million against $(3.5) million reported in the prior-year quarter. Rooms and food and beverage revenues surged 410.3% and 132.3% year over year to $13.4 million and $8.6 million, respectively. During the quarter, entertainment, retail and other revenues rose 115.7% year over year to $19.6 million.
Table games turnover in the VIP segment increased 145.4% year over year to $1,489.9 million. However, the VIP table games win rate (based on turnover) was 2.64%, lower than the expected range of 2.7-3.0%. The figure was above (2)% reported in the prior-year quarter.
Table drop at the mass market segment came in at $670.4 million compared with $40.8 million reported in the prior-year quarter. Meanwhile, table games win in the mass market category came in at $128.9 million compared with $3.4 million in the prior-year quarter.
During the reported quarter, RevPAR increased 440% year over year to $135. Occupancy levels in the segment moved up to 68% compared with 7.5% in the prior-year quarter. However, ADR came in at $198, down 42.1% year over year.
Las Vegas Operations
During second quarter, revenues from Las Vegas operations came in at $355.1 million, compared with $64.9 million in the year-ago quarter.
Casino revenues surged 362.9% year over year to $112.8 million. Meanwhile, revenues from food and beverage, rooms as well as entertainment, retail and other improved 601.3%, 659.2% and 195.2% year over year to $112.9 million, $93.8 million and $35.6 million, respectively.
Further, table games drop increased 369.9% year over year to $427 million. Moreover, table games win surged 452.6% year over year to $99 million. During the quarter, table games win percentage of 23.2% was within the projected range of 22-26% and above 19.7% reported in the prior-year quarter.
During the reported quarter, RevPAR increased 126.3% year over year to $224. Occupancy rate came in at 67.2%, up from 43.7% in the prior-year quarter. ADR came in at $333, up 47.3% year over year.
Encore Boston Harbor
During the second quarter, revenues from Encore Boston Harbor operations came in at $165.2 million. During the quarter, table games win percentage of 21.2% was within the projected range of 18-22%.
Meanwhile, adjusted property EBITDA from Encore Boston Harbor operations came in at $46.9 million against $(53.8) million reported in the prior-year quarter.
Operating Performance
During the second quarter, adjusted property earnings before interests, taxes, depreciation and amortization (EBITDA) came in at $206.9 million against $(322.9) million in the prior-year quarter.
In the quarter under review, adjusted property EBITDA from Macau totaled $14.1 million against $(82.6) million reported in the prior-year quarter. Adjusted property EBITDA from Las Vegas operations came in at $133.2 million against $(75.6) million reported in the year-ago quarter. Meanwhile, adjusted property EBITDA from Wynn Palace operations came in at $53.6 million against $(110.9) million reported in the prior-year quarter.
Cash Position
As of Jun 30, 2021, Wynn Resorts’ cash and cash equivalents totaled $2.80 billion compared with $$2.89 billion as of Mar 31, 2021.
Outstanding debt at the end of the second quarter amounted to $11.92 billion, including $3.13 billion of Wynn Las Vegas related debt, $5.94 billion of Macau debt, $2.24 billion of Wynn Resorts Finance debt and $612.6 million of debt held by the retail joint venture, which the company consolidated.
Other Updates
WynnBET online casino and sports betting app is currently available in six states with additional launches planned over the coming months. Strategic highlights in the past few months include the launch of web applications in Indiana, Colorado, Tennessee, New Jersey and Virginia.
On the development front, the company continues to enhance its product with frequent new feature releases. Also, it is advancing its marketing and branding strategy ahead of the upcoming NFL 2021 season.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -36.14% due to these changes.
VGM Scores
Currently, Wynn has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Wynn has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Wynn (WYNN) Up 3.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Wynn Resorts (WYNN - Free Report) . Shares have added about 3.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Wynn due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Wynn Resorts Q2 Earnings & Revenues Beat Estimates
Wynn Resorts reported second-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Moreover, the top and the bottom line increased on a year-over-year basis.
Matt Maddox, CEO of Wynn Resorts, stated, "We were pleased to see the strong return of our guests at both Wynn Las Vegas and Encore Boston Harbor during the second quarter with Adjusted Property EBITDA at our U.S. operations well above pre-pandemic levels, highlighting the significant pent-up demand for travel and leisure experiences."
Q2 Earnings & Revenues
The company reported an adjusted loss of $1.12 per share, narrower than the Zacks Consensus Estimate of a loss of $1.41. In the prior-year quarter, the company had reported adjusted loss of $6.14 per share.
Revenues during the second quarter came in at $990.1 million, beating the Zacks Consensus Estimate of $938 million by 5.5%. In the prior-year quarter, the company reported revenues of $85.7 million. Notably, the company benefitted from solid contributions of Wynn Palace, Wynn Macau and Las Vegas operations.
Wynn Palace Operations
During the second quarter, Wynn Palace revenues came in at $270.4 million compared with $8.7 million in the prior-year quarter. Casino revenues in the reported quarter came in at $212.1 million against $(11.4) million reported in the prior-year quarter. Rooms and food and beverage revenues surged 759% and 226.3% year over year to $20.9 million and $13.8 million, respectively. During the quarter, entertainment, retail and other revenues rose 75.1% year over year to $23.6 million.
In the VIP segment, table games turnover was $1,811.4 million, up 5.3% year over year. VIP table games win rate (based on turnover) was 3.95%, higher than the expected range of 2.7-3%. Also, it was above (1.73)% reported in the prior-year quarter. Table drop at the mass market segment came in at $707.5 million compared with $22 million reported in the prior-year quarter. Furthermore, table games win in mass market operations amounted to $163.5 million compared with $7.2 million in the prior-year quarter.
During the reported quarter, RevPAR surged 746.7% year over year to $127. Occupancy levels in the segment moved up to 70.6% compared with 4.4% in the prior-year quarter. However, average daily rate (ADR) came in at $180, down 46.9% year over year.
Wynn Macau Operations
During the second quarter, Wynn Macau revenues came in at $184 million compared with $11.9 million in the prior-year quarter. The upside was primarily driven by a rise in casino, rooms, food and beverage as well as entertainment, retail and other revenues.
Casino revenues in the reported quarter came in at $142.4 million against $(3.5) million reported in the prior-year quarter. Rooms and food and beverage revenues surged 410.3% and 132.3% year over year to $13.4 million and $8.6 million, respectively. During the quarter, entertainment, retail and other revenues rose 115.7% year over year to $19.6 million.
Table games turnover in the VIP segment increased 145.4% year over year to $1,489.9 million. However, the VIP table games win rate (based on turnover) was 2.64%, lower than the expected range of 2.7-3.0%. The figure was above (2)% reported in the prior-year quarter.
Table drop at the mass market segment came in at $670.4 million compared with $40.8 million reported in the prior-year quarter. Meanwhile, table games win in the mass market category came in at $128.9 million compared with $3.4 million in the prior-year quarter.
During the reported quarter, RevPAR increased 440% year over year to $135. Occupancy levels in the segment moved up to 68% compared with 7.5% in the prior-year quarter. However, ADR came in at $198, down 42.1% year over year.
Las Vegas Operations
During second quarter, revenues from Las Vegas operations came in at $355.1 million, compared with $64.9 million in the year-ago quarter.
Casino revenues surged 362.9% year over year to $112.8 million. Meanwhile, revenues from food and beverage, rooms as well as entertainment, retail and other improved 601.3%, 659.2% and 195.2% year over year to $112.9 million, $93.8 million and $35.6 million, respectively.
Further, table games drop increased 369.9% year over year to $427 million. Moreover, table games win surged 452.6% year over year to $99 million. During the quarter, table games win percentage of 23.2% was within the projected range of 22-26% and above 19.7% reported in the prior-year quarter.
During the reported quarter, RevPAR increased 126.3% year over year to $224. Occupancy rate came in at 67.2%, up from 43.7% in the prior-year quarter. ADR came in at $333, up 47.3% year over year.
Encore Boston Harbor
During the second quarter, revenues from Encore Boston Harbor operations came in at $165.2 million. During the quarter, table games win percentage of 21.2% was within the projected range of 18-22%.
Meanwhile, adjusted property EBITDA from Encore Boston Harbor operations came in at $46.9 million against $(53.8) million reported in the prior-year quarter.
Operating Performance
During the second quarter, adjusted property earnings before interests, taxes, depreciation and amortization (EBITDA) came in at $206.9 million against $(322.9) million in the prior-year quarter.
In the quarter under review, adjusted property EBITDA from Macau totaled $14.1 million against $(82.6) million reported in the prior-year quarter. Adjusted property EBITDA from Las Vegas operations came in at $133.2 million against $(75.6) million reported in the year-ago quarter. Meanwhile, adjusted property EBITDA from Wynn Palace operations came in at $53.6 million against $(110.9) million reported in the prior-year quarter.
Cash Position
As of Jun 30, 2021, Wynn Resorts’ cash and cash equivalents totaled $2.80 billion compared with $$2.89 billion as of Mar 31, 2021.
Outstanding debt at the end of the second quarter amounted to $11.92 billion, including $3.13 billion of Wynn Las Vegas related debt, $5.94 billion of Macau debt, $2.24 billion of Wynn Resorts Finance debt and $612.6 million of debt held by the retail joint venture, which the company consolidated.
Other Updates
WynnBET online casino and sports betting app is currently available in six states with additional launches planned over the coming months. Strategic highlights in the past few months include the launch of web applications in Indiana, Colorado, Tennessee, New Jersey and Virginia.
On the development front, the company continues to enhance its product with frequent new feature releases. Also, it is advancing its marketing and branding strategy ahead of the upcoming NFL 2021 season.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -36.14% due to these changes.
VGM Scores
Currently, Wynn has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Wynn has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.