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Wynn Numbers 'Better Than Feared,' Bode Well For MGM

Wynn Numbers 'Better Than Feared,' Bode Well For MGM
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Wynn Resorts, Limited (NASDAQ: WYNN) pre-announced its 4Q15 results on Friday, resulting in a 5.1 percent better-than-consensus estimate; however, the numbers weren't enough to change Susquehanna Financial Group's view that Macau's GGR estimates will likely be lowered.

The firm also noted that they have yet to see an indication of a bottom.

Susquehanna: Neutral, PT Of $51.50

Susquehanna has a Neutral rating for WYNN with a price of $51.50.

"Macau is in-line with consensus on EBITDA, but revenues are below expectations. This is certainly better than feared given the new competition in the quarter, helped by better cost controls," said the Susquehanna analyst in the report.

Related Link: Are There Technical Signs Of A Bottom For Casino Stocks?

MGM Looks Well Positioned, Thanks To WYNN Numbers

MGM Resorts International (NYSE: MGM) may be in for a few positives as well, as Las Vegas' RevPAR bodes well for the issue. The RevPAR was up +6.8 percent, while Vegas was a 9 percent miss "adjusting for the lucky hold."

"On a hold adjusted basis, revenues would have been down 3.6 percent Y/Y, EBITDA would have been down 9.2 percent Y/Y, both at the midpoint. Notably, RevPAR was up +6.8 percent Y/Y. Recall MGM guided to at least an 8 percent RevPAR growth for 4Q15, so WYNN's result clearly has positive read-through to MGM given WYNN's consistent underperformance vs. MGM (350bps lower on average in the four quarters)," the firm commented.

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Latest Ratings for MGM

Feb 2018Bank of AmericaMaintainsBuyBuy
Jan 2018JefferiesInitiates Coverage OnBuy
Nov 2017NomuraMaintainsBuy

View More Analyst Ratings for MGM
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