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Wynn Resorts Q3 Earnings & Revenues Miss Estimates, Stock Down
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Wynn Resorts, Limited (WYNN - Free Report) reported lower-than-expected third-quarter 2024 results wherein adjusted earnings and operating revenues missed the Zacks Consensus Estimate. On a year-over-year basis, the top line grew while the bottom line declined.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The quarter’s results reflect demand across its resorts highlighted by strong mass gaming win in Macau and solid non-gaming performance in Las Vegas. However, increased casino and rooms expenses, along with high general and administrative expenses, were concerning for the bottom line.
The company’s continuous investments in expanding the business operations on a global scale, along with ensuring shareholder value, are commendable. This prudent attitude positions WYNN well for 2024 and beyond.
WYNN stock lost 3.3% in the after-hours trading session on Monday, post the earnings release.
WYNN’s Q3 Earnings & Revenues
The company reported adjusted earnings per share (EPS) of 90 cents, which missed the Zacks Consensus Estimate of $1.17 by 23.1%. In the prior-year quarter, the company reported an adjusted EPS of 99 cents.
Wynn Resorts, Limited Price, Consensus and EPS Surprise
Quarterly operating revenues of $1.69 billion also missed the consensus mark of $1.74 billion by 2.4%. That said, the top line increased 1.2% on a year-over-year basis.
Wynn Palace Operations
Wynn Palace’s operating revenues declined to $519.8 million from $524.8 million reported in the prior-year quarter. Our model predicted segmental revenues to be $558.2 million.
Casino revenues remained flat year over year at $418 million. Rooms and entertainment, retail and other revenues decreased 9.5% and 19.5% year over year to $49.1 million and $21.1 million, respectively. Food and beverage revenues increased 20.2% year over year to $31.5 million.
In the VIP segment, table games turnover was $3.2 billion, up 11.6% year over year. VIP table games win rate (based on turnover) was 3% compared with 3.4% in the prior-year quarter. Table drop in the mass market segment was $1.69 billion compared with $1.73 billion in the prior-year quarter. Table game wins in mass market operations amounted to $404.3 million compared with $402.3 million in the prior-year quarter.
During the quarter, revenue per available room (RevPAR) declined 12.7% year over year to $289. Occupancy levels in the segment were 98.3% compared with 96.9% in the prior year quarter. The average daily rate (ADR) was $295, down 13.7% on a year-over-year basis.
Wynn Macau Operations
Wynn Macau’s operating revenues amounted to $352 million compared with $295 million in the prior-year quarter. For this business operation, we projected year-over-year growth of 1.2% to $298.7 million.
Casino revenues were $296.8 million, up 28.9% year over year. On a year-over-year basis, revenues from rooms declined 25% to $23.8 million, while revenues from food and beverage increased 6.8% to $19.5 million. Entertainment and retail and other revenues declined 19.4% year over year to $11.9 million.
Table games turnover in the VIP segment inched up 0.7% year over year to $1.2 billion. The VIP table games win rate (based on turnover) was 3.6%, up from 3.5% reported in the prior-year quarter.
Table drop in the mass market segment was $1.52 billion compared with $1.38 billion in the prior-year quarter. Table games win in the mass market category was $280 million compared with $228.3 million in the prior-year quarter.
During the quarter, RevPAR declined 28.8% year over year to $230. Occupancy levels in the segment were 98.9% compared with 98.7% in the prior-year quarter. ADR was $233, down 28.7% year over year.
Las Vegas Operations
Operating revenues from Las Vegas operations were $607.2 million compared with $619 million in the prior-year quarter. Our projection for the metric was $658.1 million.
Casino revenues declined 13.6% year over year to $145.2 million. Revenues from food and beverage plunged 5.6% to $191.8 million. Revenues from rooms and entertainment, retail and other increased 4.8% and 20% year over year to $187.1 million and $83.1 million, respectively.
Table games drop was down 4.4% year over year to $580.8 million. Table game wins also decreased 14.3% year over year to $135.2 million. Table games win percentage of 23.3% was down from 26% in the prior-year quarter.
RevPAR rose 5.8% year over year to $441. The occupancy rate was 89%, down from 90% in the prior-year period. ADR was $495, up 6.9% year over year.
Encore Boston Harbor
Operating revenues from Encore Boston Harbor operations amounted to $214.1 million compared with $210.4 million in the prior-year quarter. Our projection for the metric was $203.4 million.
Casino revenues increased 1.8% to $158.7 million. Revenues from rooms and food and beverage inched down 0.4% year over year to $24.7 million and $19.8 million, respectively. Entertainment, retail and other revenues increased 11.6% year over year to $10.8 million.
During the quarter, table games win percentage of 21.3% was up from 20.8% in the prior-year quarter.
RevPAR increased 1.7% year over year to $412. The occupancy rate was 96.9%, up from 96% in the prior-year quarter. ADR was $426, up 1.2% year over year.
Operating Performance of Wynn Resorts
During the third quarter, adjusted property EBITDAR was $527.7 million compared with $530.4 million in the prior-year quarter.
Adjusted property EBITDAR from total Macau operations totaled $262.9 million compared with $255 million in the prior-year quarter. Adjusted property EBITDAR from Las Vegas operations was $202.7 million compared with $219.7 million in the year-ago quarter. Adjusted property EBITDAR from Encore Boston Harbor was $63 million compared with $60.5 million in the prior-year quarter.
Cash Position of WYNN
As of Sept. 30, 2024, Wynn Resorts’ cash and cash equivalents totaled $2.41 billion compared with $2.88 billion as of Dec. 31, 2023.
Total current and long-term outstanding debt at the end of the third quarter amounted to $11.79 billion. The figure included $1.46 billion of Wynn Las Vegas-related debt, $6.41 billion of Macau debt, $3.3 billion of Wynn Resorts Finance debt and $614.5 million of debt held by the retail joint venture, which the company consolidated.
Hyatt Hotels Corporation (H - Free Report) delivered third-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.
The company reported a 3% increase in comparable system-wide hotel RevPAR compared with the same period in 2023. However, comparable system-wide all-inclusive resorts’ Net Package RevPAR declined 0.9% year over year. As of Sept. 30, 2024, Hyatt had a pipeline of executed management or franchise contracts for approximately 690 hotels (or about 135,000 rooms).
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported solid third-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
The management attributed the performance to the strength of NCLH's business model, the appeal of its product offerings across brands, and the effective execution by both shoreside and shipboard teams. Driven by high demand and a focus on cost control and margin enhancement, the company has raised its full-year guidance for a fourth time, anticipating 2024 to set new records for revenues, Net Yield growth and Adjusted EBITDA.
MGM Resorts International (MGM - Free Report) reported third-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined from the prior-year's quarter figure.
During the quarter, the company reported sequential improvements in Las Vegas, driven by growth in Average Daily Rate and occupancy levels. The company emphasized advancements in digital investments and an impressive pipeline of integrated resort developments in Japan, New York and other markets to drive growth in the upcoming periods.
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Wynn Resorts Q3 Earnings & Revenues Miss Estimates, Stock Down
Wynn Resorts, Limited (WYNN - Free Report) reported lower-than-expected third-quarter 2024 results wherein adjusted earnings and operating revenues missed the Zacks Consensus Estimate. On a year-over-year basis, the top line grew while the bottom line declined.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The quarter’s results reflect demand across its resorts highlighted by strong mass gaming win in Macau and solid non-gaming performance in Las Vegas. However, increased casino and rooms expenses, along with high general and administrative expenses, were concerning for the bottom line.
The company’s continuous investments in expanding the business operations on a global scale, along with ensuring shareholder value, are commendable. This prudent attitude positions WYNN well for 2024 and beyond.
WYNN stock lost 3.3% in the after-hours trading session on Monday, post the earnings release.
WYNN’s Q3 Earnings & Revenues
The company reported adjusted earnings per share (EPS) of 90 cents, which missed the Zacks Consensus Estimate of $1.17 by 23.1%. In the prior-year quarter, the company reported an adjusted EPS of 99 cents.
Wynn Resorts, Limited Price, Consensus and EPS Surprise
Wynn Resorts, Limited price-consensus-eps-surprise-chart | Wynn Resorts, Limited Quote
Quarterly operating revenues of $1.69 billion also missed the consensus mark of $1.74 billion by 2.4%. That said, the top line increased 1.2% on a year-over-year basis.
Wynn Palace Operations
Wynn Palace’s operating revenues declined to $519.8 million from $524.8 million reported in the prior-year quarter. Our model predicted segmental revenues to be $558.2 million.
Casino revenues remained flat year over year at $418 million. Rooms and entertainment, retail and other revenues decreased 9.5% and 19.5% year over year to $49.1 million and $21.1 million, respectively. Food and beverage revenues increased 20.2% year over year to $31.5 million.
In the VIP segment, table games turnover was $3.2 billion, up 11.6% year over year. VIP table games win rate (based on turnover) was 3% compared with 3.4% in the prior-year quarter. Table drop in the mass market segment was $1.69 billion compared with $1.73 billion in the prior-year quarter. Table game wins in mass market operations amounted to $404.3 million compared with $402.3 million in the prior-year quarter.
During the quarter, revenue per available room (RevPAR) declined 12.7% year over year to $289. Occupancy levels in the segment were 98.3% compared with 96.9% in the prior year quarter. The average daily rate (ADR) was $295, down 13.7% on a year-over-year basis.
Wynn Macau Operations
Wynn Macau’s operating revenues amounted to $352 million compared with $295 million in the prior-year quarter. For this business operation, we projected year-over-year growth of 1.2% to $298.7 million.
Casino revenues were $296.8 million, up 28.9% year over year. On a year-over-year basis, revenues from rooms declined 25% to $23.8 million, while revenues from food and beverage increased 6.8% to $19.5 million. Entertainment and retail and other revenues declined 19.4% year over year to $11.9 million.
Table games turnover in the VIP segment inched up 0.7% year over year to $1.2 billion. The VIP table games win rate (based on turnover) was 3.6%, up from 3.5% reported in the prior-year quarter.
Table drop in the mass market segment was $1.52 billion compared with $1.38 billion in the prior-year quarter. Table games win in the mass market category was $280 million compared with $228.3 million in the prior-year quarter.
During the quarter, RevPAR declined 28.8% year over year to $230. Occupancy levels in the segment were 98.9% compared with 98.7% in the prior-year quarter. ADR was $233, down 28.7% year over year.
Las Vegas Operations
Operating revenues from Las Vegas operations were $607.2 million compared with $619 million in the prior-year quarter. Our projection for the metric was $658.1 million.
Casino revenues declined 13.6% year over year to $145.2 million. Revenues from food and beverage plunged 5.6% to $191.8 million. Revenues from rooms and entertainment, retail and other increased 4.8% and 20% year over year to $187.1 million and $83.1 million, respectively.
Table games drop was down 4.4% year over year to $580.8 million. Table game wins also decreased 14.3% year over year to $135.2 million. Table games win percentage of 23.3% was down from 26% in the prior-year quarter.
RevPAR rose 5.8% year over year to $441. The occupancy rate was 89%, down from 90% in the prior-year period. ADR was $495, up 6.9% year over year.
Encore Boston Harbor
Operating revenues from Encore Boston Harbor operations amounted to $214.1 million compared with $210.4 million in the prior-year quarter. Our projection for the metric was $203.4 million.
Casino revenues increased 1.8% to $158.7 million. Revenues from rooms and food and beverage inched down 0.4% year over year to $24.7 million and $19.8 million, respectively. Entertainment, retail and other revenues increased 11.6% year over year to $10.8 million.
During the quarter, table games win percentage of 21.3% was up from 20.8% in the prior-year quarter.
RevPAR increased 1.7% year over year to $412. The occupancy rate was 96.9%, up from 96% in the prior-year quarter. ADR was $426, up 1.2% year over year.
Operating Performance of Wynn Resorts
During the third quarter, adjusted property EBITDAR was $527.7 million compared with $530.4 million in the prior-year quarter.
Adjusted property EBITDAR from total Macau operations totaled $262.9 million compared with $255 million in the prior-year quarter. Adjusted property EBITDAR from Las Vegas operations was $202.7 million compared with $219.7 million in the year-ago quarter. Adjusted property EBITDAR from Encore Boston Harbor was $63 million compared with $60.5 million in the prior-year quarter.
Cash Position of WYNN
As of Sept. 30, 2024, Wynn Resorts’ cash and cash equivalents totaled $2.41 billion compared with $2.88 billion as of Dec. 31, 2023.
Total current and long-term outstanding debt at the end of the third quarter amounted to $11.79 billion. The figure included $1.46 billion of Wynn Las Vegas-related debt, $6.41 billion of Macau debt, $3.3 billion of Wynn Resorts Finance debt and $614.5 million of debt held by the retail joint venture, which the company consolidated.
WYNN’s Zacks Rank & Recent Consumer Discretionary Releases
Wynn Resorts currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hyatt Hotels Corporation (H - Free Report) delivered third-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.
The company reported a 3% increase in comparable system-wide hotel RevPAR compared with the same period in 2023. However, comparable system-wide all-inclusive resorts’ Net Package RevPAR declined 0.9% year over year. As of Sept. 30, 2024, Hyatt had a pipeline of executed management or franchise contracts for approximately 690 hotels (or about 135,000 rooms).
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported solid third-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
The management attributed the performance to the strength of NCLH's business model, the appeal of its product offerings across brands, and the effective execution by both shoreside and shipboard teams. Driven by high demand and a focus on cost control and margin enhancement, the company has raised its full-year guidance for a fourth time, anticipating 2024 to set new records for revenues, Net Yield growth and Adjusted EBITDA.
MGM Resorts International (MGM - Free Report) reported third-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined from the prior-year's quarter figure.
During the quarter, the company reported sequential improvements in Las Vegas, driven by growth in Average Daily Rate and occupancy levels. The company emphasized advancements in digital investments and an impressive pipeline of integrated resort developments in Japan, New York and other markets to drive growth in the upcoming periods.