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Factors Setting the Tone for Wynn Resorts' (WYNN) Q2 Earnings

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Wynn Resorts, Limited (WYNN - Free Report) is scheduled to report second-quarter 2022 results on Aug 9, 2022, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 5.2%.

How Are Estimates Placed?

The Zacks Consensus Estimate for the second-quarter bottom line is pegged at a loss of 94 cents per share, indicating an improvement of 16.1% from a loss of $1.12 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $1,009 million. The metric suggests an improvement of 1.9% from the year-ago quarter’s figure.

Wynn Resorts, Limited Price and EPS Surprise

 

Wynn Resorts, Limited Price and EPS Surprise

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

 

Let's look at how things have shaped up in the quarter.

Factors to Note

Wynn Resorts’ second-quarter performance is likely to have benefited from its non-gaming business, remodeling initiatives and sports betting expansion. This and increased visitation (in the Las Vegas market), improved bookings (backed by strength in ADR’s) and resilient customer demand (in Macao) are likely to have aided the company’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for the company’s second-quarter revenues from Las Vegas operations is pegged at $488 million, suggesting an improvement from the year-ago quarter’s reported figure of $355.1 million.

Strong contributions from rooms, food and beverage and retail might have aided the company’s second-quarter top line. The Zacks Consensus Estimate for room revenues is pegged at $208 million, indicating 51% growth year over year. The consensus estimate for food and beverage and entertainment, retail and other revenues is pegged at $189 million and $121 million, indicating an increase of 26.7% and 20.4%, respectively.

However, tighter travel restrictions, quarantine policies and reduced accessibility of transportation is likely to have affected the company’s Macao operations in the second quarter. Although sequential improvements in visitation are likely, it is still expected to remain below pre-pandemic levels. The Zacks Consensus Estimate for net revenues at Wynn Palace and Wynn Macau is pegged at $174 million and $154 million, suggesting a 35.7% and 16.3% decline, respectively, from the prior-year quarter’s figures.

What the Zacks Model Unveils

Our proven model predicts 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 odds of an earnings beat.

Earnings ESP: Wynn Resorts has an Earnings ESP of +3.93%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

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 post an earnings beat:

Reynolds Consumer Products Inc. (REYN - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank #3.

Shares of Reynolds Consumer Products have gained 2.9% in the past year. REYN’s earnings surpassed the consensus mark in all the trailing four quarters, the average being 4.8%.

Malibu Boats, Inc. (MBUU - Free Report) has an Earnings ESP of +3.78% and a Zacks Rank of 3.

Shares of Malibu Boats have declined 22.9% in the past year. MBUU’s earnings surpassed the consensus mark in all the trailing four quarters, the average being 16.1%.

Dolby Laboratories, Inc. (DLB - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #3.

Shares of Dolby Laboratories have declined 20% in the past year. DLB’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 14.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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