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Wynn Resorts (WYNN) to Post Q3 Earnings: What's in Store?

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Wynn Resorts, Limited (WYNN - Free Report) is likely to register increases in both earnings and revenues when it reports third-quarter 2021 results.  In the last reported quarter, the company delivered a negative earnings surprise of 20.6%.

Q3 Estimates

The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of $1.17 per share. The company had reported a loss of $7.04 in the prior-year quarter. The Zacks Consensus Estimate for revenues stands at $987.1 million, indicating a whopping growth of 166.5% from the year-ago reported figure.

Factors to Note

Wynn Resorts third-quarter performance is likely to have benefited from gradual improvement in visitation (in Macau), improved non-gaming revenues and expansion in domestic markets. The company anticipates solid revenue generation on the back of new product features and an unique marketing campaign. More stabilized and normalized operating environment backed by ramped-up vaccination drives also bodes well.

The company has been focusing on sport betting expansion to drive growth. During the second quarter, the company has made progress with new product delivery and marketing programs, particularly for the NFL 2021 football season. This includes web application launches in Indiana, Colorado, Tennessee, New Jersey and Virginia. It strengthened third-party partnerships through agreements with the Detroit Lions, the Colorado Rockies and Cumulus Media. Additionally, the company collaborated with several engaging content creators to develop an unique sports themed program. These efforts are likely to have contributed to the company’s to-be-reported quarter’s performance.

However, the coronavirus pandemic continues to hurt the company’s performance. On Aug 3, 2021, the government of Macau announced enhanced measures including tighter border control and strict mandatory COVID-19 testing requirements. The spread of the Delta variant remains a concern. Cash burn on account of the coronavirus might have weighed on the third-quarter 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

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 -16.92% and a Zacks Rank #4 (Sell).

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.

Golden Entertainment, Inc. (GDEN - Free Report) has a Zacks Rank #1 and an Earnings ESP of +18.44%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Accel Entertainment, Inc. (ACEL - Free Report) has a Zacks Rank #2 and an Earnings ESP of +20.00%.

Choice Hotels International, Inc. (CHH - Free Report) has a Zacks Rank #2 and an Earnings ESP of +6.44%.

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