Wynn Resorts Ltd WYNN will be reporting its third-quarter (Q3) earnings on Nov. 9 after market hours.
This hospitality and entertainment company has a portfolio of high-end resorts and entertainment offerings. Among its properties are Wynn Las Vegas and Encore at Wynn Las Vegas in the U.S.
In China, there’s Wynn Macau and Wynn Palace.
Business & Fundamentals: Wynn’s financials and business performance have recovered from COVID-19 lows. However, the business hasn’t yet been able to reach its pre-pandemic levels. Wynn is largely a casino-driven, with over 50% of its revenues coming from casinos.
Factors that could serve as catalysts to WYNN’s Q3 report include strengths in luxury retail sales, direct VIP turnover, mass casino drop, and hotel revenues. The company’s non-gambling revenue-boosting techniques and expansion initiatives appear to be contributing positively to revenue growth.
Related: Earnings Outlook For Wynn Resorts
Q3 Analysts' Focus: Analysts’ focus will be on the company’s revenue from Macau, given the Macau Gaming Inspection and Coordination Bureau’s recent report. The report indicated a 316% year-over-year increase in Macau gross gaming revenue for the first ten months of 2023 with the return of live performances and industry conferences in the region, boosting hotel occupancy.
Analysts expect Wynn to report 78 cents in EPS and $1.58 billion in revenue for the quarter. Investors expect Wynn to report an earnings beat, following its industry peers MGM Resorts International MGM, Caesars Entertainment CZR and Las Vegas Sands LVS. The stock, however, may experience some volatility due to a one-off incident.
The Culinary Workers Union has declared a strike with the Formula One racing in Las Vegas just around the corner. Prospective strikers are demanding a proper employment contract, along with competitive pay and benefits. While Caesars Entertainment has struck a deal with the union, it remains to be seen what Wynn and MGM would come up with.
Ratings & Consensus Estimates: For the fiscal year ended Dec. 2023, analysts expect Wynn to report $3.19 in EPS and $6.28 billion in revenue. The stock is rated a Buy by Wall Street analysts, with a $108.50 consensus price target. Meredith Jensen of HSBC recently initiated coverage of the stock with Buy rating and a price target of $111. Morgan Stanley’s Stephen Grambling rates the stock Equal-Weight with a price target of $109.
WYNN Price Action: WYNN stock has been on a decline over the last 2 quarters, and is down 17.61% over the past 6 months. Investors are seeing a trend reversal since Nov. 1 hinting at the markets expecting WYNN to deliver an earnings beat. The stock traded at $92.90 on Wednesday close.
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