Wynn Resorts, Limited WYNN reported first-quarter 2019 financial numbers, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. While the bottom line outpaced the consensus mark after missing in the preceding three quarters, revenues beat the same for the third consecutive quarter.
Despite delivering better-than-expected results, shares of the company declined 4.6% in after-hours trading due to dismal Wynn Macau performance.
Adjusted earnings in the quarter under review came in at $1.61 per share, exceeding the consensus mark of $1.59 but decreased 30% on a year-over-year basis. This downside can be attributed to a decline in operating income from the Las Vegas operations and Wynn Macau, which overshadowed growth in Wynn Palace operations.
Revenues totaled $1,651.5 million, which surpassed the consensus estimate of $1,642 million. However, the top line declined 3.7% due to dismal performance of Wynn Macau and Las Vegas operations.
Concurrent with the earnings announcement, the company declared a quarterly cash dividend of $1.00 per share. The dividend will be payable May 30, 2019, to its shareholders of record as of May 22.
Wynn Palace Continues to Impress
Revenues from Wynn Palace totaled $726.6 million in the first quarter, up 9.1% year over year. Casino revenues summed $623.2 million, up 9.6%. In the VIP segment, table games turnover was $12.63 billion, down 17.9% year over year. VIP table games win rate (based on turnover) was 3.91%, above the expected range of 2.7-3% and also up from 2.60 witnessed in the year-ago quarter. Table drop in the mass market segment was $1.3 billion, up 7.1% from the year-ago quarter. Furthermore, table games win in mass market operations amounted to $315.5 million, up 1.7% year over year.
Non-casino revenues summed $103.4million, up 6.2% from the year-ago quarter. Also, room revenues totaled $43.3 million, up 7.1% from a year ago. Notably, average daily rate (ADR) came in at $271 (up 28.8%), occupancy was 97.2% (up 40 bps year over year) and revenue per available room (RevPAR) was $264 (surged 8.2%).
Wynn Macau Operations
Wynn Macau revenues decreased 15.3% year over year to $523.9 million in the first quarter due to decline in casino revenues.
Notably, casino revenues in the reported quarter decreased 16.5% to $450.2 million. Also, table games turnover in the VIP segment declined 40.3% to $10.19 billion. In the meantime, the VIP table games win rate (based on turnover) was 2.90%, within the expected range of 2.7-3.0% and above the year-ago quarter figure of 2.61%.
Table drop in the mass market segment was $1.35 billion, up 2.2% year over year. Table games win in the mass market category amounted to $264.5 million, up 3.1%.
Non-casino revenues came in at $73.6 million, down 7% year over year. Room revenues were up 1.6% year over year at $28.9 million. RevPAR came in at $288, flat with the year-ago quarter figure. Also, ADR was $290, flat year over year.
Wynn Resorts, Limited Price, Consensus and EPS Surprise