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Wynn Resorts' (WYNN) to Post Q3 Earnings: What's in Store?

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Wynn Resorts, Limited (WYNN - Free Report) is scheduled to report third-quarter 2022 results on Nov 9, 2022, after the closing bell. In the previous quarter, the company reported an earnings surprise of 12.8%.

How Are Estimates Placed?

The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of $1.20 per share, indicating an improvement of 3.2% from a loss of $1.24 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $852 million. The metric suggests a deterioration of 14.3% from the year-ago quarter’s figure.

Wynn Resorts, Limited Price and EPS Surprise

 

Wynn Resorts, Limited Price and EPS Surprise

Wynn Resorts, Limited price-eps-surprise | Wynn Resorts, Limited Quote

 

Let's look at how things have shaped up in the quarter.

Factors to Note

Wynn Resorts’ third-quarter performance is likely to have benefited from its non-gaming business, remodeling initiatives, improved bookings (backed by strength in ADR’s) and sports betting expansion. Solid Las Vegas operations and broad-based strength across rooms, entertainment and retail are likely to have aided the company’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for the company’s third-quarter revenues from Las Vegas operations is pegged at $518 million, suggesting an improvement from the year-ago quarter’s reported figure of $476 million. The consensus estimate for room, entertainment, retail and other revenues is pegged at $198 million and $113 million, indicating growth of 13.8% and 5.6%, year over year, respectively.

However, the seasonal slowdown in occupancy (particularly in August) and COVID-related travel challenges are likely to have affected the company’s operations in the third quarter. This and the shutdown of integrated resorts (due to COVID outbreaks) are likely to have affected the company’s Macau operations in the to-be-reported quarter. The Zacks Consensus Estimate for net revenues at Wynn Palace and Wynn Macau is pegged at $42.1 million and $40 million, suggesting a 76.7% and 69.5% decline, respectively, from the prior-year quarter’s figures.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Wynn Resorts this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.

Earnings ESP: Wynn Resorts has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #2.

Shares of RCI Hospitality have increased 10.3% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.

BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank #3.

Shares of BJ's Wholesale Club have increased 27.5% in the past year. BJ’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 16.5%.

Caleres, Inc. (CAL - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #3.

Shares of Caleres have gained 2.1% in the past year. CAL’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 34.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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