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Wynn To Kick Off Q3 Earnings Season For Casino Operators

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Wynn To Kick Off Q3 Earnings Season For Casino Operators
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Wynn Resorts, Limited (NASDAQ: WYNN) is set to kick-start the earnings season for casino operators on October 19 after the market closes.

Casino operators can't ignore the Macau region, which witnessed a drop in gross gaming revenues in 2015 due to the crackdown on corruption. However, the August monthly performance changed those sentiments. The growth in gross gaming revenue (GGR) came after 27 straight down months.

According to a Nevada state, Macau government data and Statista, Macau generated $30.5 billion GGR with global market share of 16.9 percent in 2015. Interestingly, Goldman Sachs pointed out that September GGR was better than its expectations. Analyst Simon Cheung felt that Wynn was one of the firms to stimulate demand.

Related Link: Macau September Revenue Tops Expectations: Is The Bottom Finally In?

Strong GGR Momentum

The brokerage sees strong GGR momentum for the third quarter despite volatility. Therefore, the firm expects the industry to deliver EBITDA uptick of 3 percent from Macau gaming region over the last year period.

CLSA expects Macau gaming revenue to grow 6 percent in 2017 and 2018, although the current year could witness a drop of 6 percent.

Street Expectations

Wall Street analysts' expect Wynn Resorts to earn EPS of $0.81 on revenue of $1.12 billion for the third quarter. The company delivered positive earnings surprises in the last three quarters and in the preceding quarter, its EPS came in line with estimates.

The following ratings have been assigned by different brokerages:

  • Goldman Sachs maintains Buy rating
  • Deutsche Bank retained Hold rating
  • CLSA maintained Underperform rating

Latest Ratings for WYNN

DateFirmActionFromTo
Oct 2016SusquehannaInitiates Coverage OnPositive
Jul 2016NomuraDowngradesNeutralReduce
Jul 2016CLSADowngradesOutperformUnderperform

View More Analyst Ratings for WYNN
View the Latest Analyst Ratings

Posted-In: Goldman Sachs Simon CheungAnalyst Color Previews Analyst Ratings Trading Ideas Best of Benzinga

 

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