Ahead Of Wynn Resorts Reporting Earnings: Here's What Investors Need To Know

Zinger Key Points
  • Wynn fell short of its estimated EPS and revenues last quarter
  • The hotel chain has been losing money at its China properties due to nationwide COVID-19 lockdowns

The global casino and hotel leader, Wynn Resorts Limited WYNN is set to report its second quarter earnings after the bell on Tuesday.

Earnings Outlook: Today’s reporting comes after the company’s three main competitors reported their quarterly earnings. Those companies are Las Vegas Sands Corp. LVS, MGM Resorts International MGM and Caesars Entertainment Inc. CZR.

It is noteworthy that all three companies followed the same trend when reporting earnings, by missing the consensus analysts' estimates for earnings per share (EPS) but beating the estimated quarterly revenue.

One main area of concern for Wynn is its properties in China – Wynn Macau and Wynn Palace – due to nationwide COVID-19 lockdowns. For many months, China was under a strict lockdown, which caused operating revenues to significantly decrease at those properties.

Last quarter, the company reported a 31.18% year-over-year decrease in operating revenue from Wynn Palace, and a 24.42% decrease from Wynn Macau. Investors will be watching to see how much the properties lost in the second quarter of this year and if lockdowns are still affecting the resorts.

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Last quarter, Wynn missed analysts' estimates for both its quarterly revenue and EPS, with $953.334 million and –$1.210, respectively.

Analysts are taking an optimistic approach to the company’s second quarter results, with improved estimates for both metrics. Analysts are estimating revenues of $980.850 million and an EPS of –$1.010.

Price Action: Wynn shares are down 1.84% as the share price has lowered to $64.68 during Tuesday’s trading session, according to Benzinga Pro.

Photo: Courtesy of Scott Webb on Unsplash

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