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Wynn Resorts (WYNN) Q3 Earnings Beat on Higher Revenues

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Wynn Resorts Ltd. (WYNN - Free Report) posted solid results for third-quarter 2017, with earnings and revenues beating the Zacks Consensus Estimate.

Earnings and Revenues Discussion

Adjusted earnings of $1.52 per share surpassed the Zacks Consensus Estimate of $1.37 by nearly 11%. Further, the bottom line increased over 100% from the year-ago figure of 74 cents, given a substantial rise in revenues.

Also, Wynn Resorts’ revenues of $1.61 billion topped the Zacks Consensus Estimate of $1.56 billion by 3.3%. In fact, the top line increased 45.3%, given significant contribution from Wynn Palace along with favorable performance by the company’s Las Vegas Operations and higher revenues from Wynn Macau.

Adjusted property earnings before interests, taxes, depreciation and amortization (EBITDA) surged 54.8% to $473 million year over year on higher revenues.

Macau Operations

Wynn Resorts reports its Macau table games results under two segments - VIP and mass market.

Wynn Macau

Wynn Macau revenues increased 15.3% year over year to $597.4 million in the quarter, owing to higher casino revenues, somewhat offset by lower non-casino revenues.

Notably, casino revenues from Macau operations jumped 16.2% to $567.7 million. Meanwhile, table games turnover in the VIP segment rose 22.2% to $13.37 billion. In addition, the VIP table games win rate (based on turnover) was 3.37%, up 3 basis points (bps) year over year and above the projected range of 2.7% to 3%.

Table drop in the mass market segment was $1.07 billion, down 3.2%. Nevertheless, table games win in the mass market category amounted to $216.4 million, up 5.5%. Also, mass market win rate was 20.2%, up 160 bps.

Non-casino revenues before promotional allowances decreased 2.3% to $62.2 million. Additionally, room revenues declined 7.9% to $24.1 million. Revenue per available room (RevPAR) also fell 6.6% in the quarter to $240 million as average daily rate (ADR) declined 8.9%. Conversely, occupancy rate increased 220 bps to 97.3%.

In the quarter under review, adjusted property EBITDA was $183.2 million, up 21.3% year over year.

Wynn Palace

On Aug 22, 2016, Wynn Resorts’ chairman of the board and chief executive officer, Steve Wynn, unveiled the Wynn Palace resort in the Cotai area of Macau. Thus, the third quarter of 2017 represents the fourth full quarter of operations for this resort.

Wynn Resorts’ revenues from Wynn Palace were $555.3 million in the quarter, while casino revenues totaled to $514.5 million.

While table games turnover in the VIP segment was $13.69 billion, VIP table games win rate (based on turnover) was 2.99% within the expected range of 2.7-3%.

Markedly, table drop in the mass market segment was $866.6 million. While, table games win in mass market operations amounted to $194.3 million, mass market win rate was 22.4%.

Non-casino revenues, before promotional allowances were $79.4 million. During the quarter, room revenues were $32.9 million. Notably, ADR came in at $219 million, occupancy of 96.1% and REVPAR of $211 million. In the quarter, adjusted property EBITDA stood at $138.2 million.

Las Vegas Operations

Wynn Resorts’ revenues from Las Vegas operations were up 7.6% to $459.6 million on the back of higher casino and non-casino revenues.

Notably, casino revenues from Las Vegas operations increased 13.9% to $174.4 million. Meanwhile, table games win percentage was 26.6%, up 190 bps and above management’s guidance range of 21-25%.

Also, total non-casino revenues, before promotional allowances increased 4.3% to $329.8 million year over year. Room revenues were up 5.3% to $118.1 million. During the quarter, RevPAR grew 5.4% to $273 million on the back of a 140 bps increase in occupancy rate and a 3.8% rise in ADR. Food and beverage revenues increased 6.6% to $154.8 million, as against entertainment, retail and other revenues decline of 3.3% to $57 million. Adjusted property EBITDA was up 17.6% to $151.5 million.

Zacks Rank & Peer Releases

Wynn Resorts sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Las Vegas Sands Corp.’s (LVS - Free Report) third-quarter 2017 adjusted earnings of 77 cents per share surpassed the Zacks Consensus Estimate of 67 cents by 14.9% and rose 8.5% year over year, owing to higher revenues.

In third-quarter 2017, Monarch Casino & Resort, Inc. (MCRI - Free Report) posted adjusted earnings of 49 cents per share that outpaced the Zacks Consensus Estimate of 45 cents by 8.9%. Further, earnings increased 8.9% from the year-ago figure of 45 cents, mainly backed by higher revenues.

Another casino operator, MGM Resorts International (MGM - Free Report) , is slated to release its third-quarter numbers on Nov 8. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 32 cents.

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