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Wynn Resorts (WYNN) Q2 Earnings & Revenues Lag, Both Up Y/Y
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Wynn Resorts, Limited (WYNN - Free Report) reported lower-than-expected second-quarter 2024 results, wherein adjusted earnings and revenues missed the Zacks Consensus Estimate. On the other hand, the metrics rose year over year.
The quarter’s results reflect strong contributions from the Wynn Palace, Wynn Macau and Las Vegas operations, partially offset by softer contributions from the Encore Boston Harbor operations.
The company’s continuous investments in expanding the business operations on a global scale along with ensuring shareholder value are commendable. This prudent attitude positions WYNN well for growth in 2024 and beyond.
Q2 Earnings & Revenues
The company reported adjusted earnings per share (EPS) of $1.12, which missed the Zacks Consensus Estimate of $1.23 by 8.9%. In the prior-year quarter, the company reported an adjusted EPS of 91 cents.
Wynn Resorts, Limited Price, Consensus and EPS Surprise
Quarterly operating revenues of $1.73 billion also marginally missed the consensus mark of $1.75 billion by 0.9%. That said, the top line increased 8.1% on a year-over-year basis.
Wynn Palace Operations
Wynn Palace’s operating revenues increased to $548 million from $468.4 million reported in the prior-year quarter. Our model predicted segmental revenues at $499.2 million.
Casino revenues totaled $445 million compared with $365.3 million reported in the prior-year quarter. Rooms and food and beverage revenues grew 0.2% and 18.1% year over year to $50.2 million and $29.8 million, respectively. During the quarter, entertainment, retail and other revenues fell 16.9% year over year to $23.1 million.
In the VIP segment, table games turnover was $2.81 billion, down 7.6% year over year. VIP table games win rate (based on turnover) was 4.1% compared with 4.24% reported in the prior-year quarter. Table drop in the mass market segment was $1.74 billion compared with $1.51 billion reported in the prior-year quarter. Table game wins in mass market operations amounted to $409.4 million compared with $305.8 million reported in the prior-year quarter.
During the reported quarter, revenue per available room (RevPAR) increased 1.6% year over year to $312. Occupancy levels in the segment were 98.9% compared with 96.5% in the prior-year quarter. The average daily rate (ADR) was $316, down 0.6% on a year-over-year basis.
Wynn Macau Operations
Wynn Macau’s operating revenues amounted to $337.3 million compared with $301.6 million in the prior-year quarter. For this business operation, we projected year-over-year growth of 17% to $352.9 million.
Casino revenues were $280.7 million, up 15.5% year over year. On a year-over-year basis, revenues from rooms declined 9.1% to $23.7 million while revenues from food and beverage increased 36.4% to $20 million. Entertainment and retail and other revenues declined 28.2% year over year to $12.8 million.
Table games turnover in the VIP segment declined 16.3% year over year to $1.16 billion. The VIP table games win rate (based on turnover) was 2.19%, down from 4.16% reported in the prior-year quarter.
Table drop in the mass market segment was $1.6 billion compared with $1.22 billion in the prior-year quarter. Table games win in the mass market category was $280.8 million compared with $216.4 million in the prior-year quarter.
During the reported quarter, RevPAR declined 10% year over year to $234. Occupancy levels in the segment were 99.4% compared with 96.8% in the prior-year quarter. ADR was $236, down 12.3% year over year.
Las Vegas Operations
Operating revenues from Las Vegas operations were $628.7 million compared with $578.1 million in the prior-year quarter. Our projection for the metric was $616.6 million.
Casino revenues declined 6% year over year to $129.7 million. Revenues from food and beverage grew 6.8% to $208.4 million. Revenues for rooms and entertainment, retail and other increased 15.8% and 26% year over year to $205.9 million and $84.7 million, respectively.
Table games drop was down 4.2% year over year to $536.5 million. Table game wins also decreased 8.2% year over year to $117.5 million. Table games win percentage of 21.9% was down from 22.9% in the prior-year quarter.
RevPAR rose 15.8% year over year to $484. The occupancy rate was 90.9%, up from 90.6% in the prior-year period. ADR was $532, up 15.2% year over year.
Encore Boston Harbor
Operating revenues from Encore Boston Harbor operations amounted to $212.6 million compared with $221.9 million reported in the prior-year quarter. Our projection for the metric was $230.8 million.
Casino revenues declined 7.9% to $153.6 million. Revenues from rooms increased 9.7% year over year to $24.7 million. Revenues from food and beverage also increased 5.4% to $23.2 million. Entertainment, retail and other revenues increased 5.1% year over year to $11.2 million.
During the quarter, table games win percentage of 19.6% was down from 22.3% reported in the prior-year quarter.
RevPAR increased 9.7% year over year to $407. The occupancy rate was 96.5%, up from 92.7% in the prior-year quarter. ADR was $422, up 5.5% year over year.
Operating Performance
During the second quarter, adjusted property EBITDAR was $571.7 million compared with $524.5 million in the prior-year quarter.
Adjusted property EBITDAR from total Macau operations totaled $280.4 million compared with $246.2 million in the prior-year quarter. Adjusted property EBITDAR from Las Vegas operations was $230.3 million compared with $224.1 million in the year-ago quarter. Adjusted property EBITDAR from Encore Boston Harbor was $62.1 million compared with $69.1 million in the prior-year quarter.
Cash Position
As of Jun 30, 2024, Wynn Resorts’ cash and cash equivalents totaled $2.38 billion compared with $2.88 billion reported as of Dec 31, 2023.
Total current and long-term outstanding debt at the end of the second quarter amounted to $11.03 billion. The figure included $1.46 billion of Wynn Las Vegas-related debt, $6.44 billion of Macau debt, $2.52 billion of Wynn Resorts Finance debt and $614.4 million of debt held by the retail joint venture, which the company consolidated.
Hyatt Hotels Corporation (H - Free Report) delivered second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company’s top line declined year over year.
The timing of Easter, renovations at major resort properties and the lingering impact of the 2023 Maui wildfires affected the company's performance. As of Jun 30, 2024, Hyatt had a pipeline of executed management or franchise contracts of approximately 670 hotels (or about 130,000 rooms). Management anticipates 2024 system-wide RevPAR to rise 3-4% from the 2023 level, down from the prior estimated range of 3-5%.
MGM Resorts International (MGM - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The bottom and top lines increased on a year-over-year basis.
During the quarter, the company exhibited strong financial performance and growth, setting a record for MGM China Adjusted Property EBITDAR. Also, it stated the benefits of Las Vegas expansion and strategic partnership with Marriott. MGM’s meetings and convention business witnessed improvement, supported by the remodel of Mandalay Bay. Given the strategic initiatives and significant progress, management is optimistic and anticipates the momentum to continue for the remainder of 2024.
JAKKS Pacific, Inc. (JAKK - Free Report) reported second-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the bottom and top lines missed the consensus estimate for the third straight quarter.
The company’s performance was hindered by soft sales in the Toys/Consumer Products segment due to lower sales in North America, accompanied by a fall in the Costumes sales. Furthermore, increased SG&A expenses, risks underlining the Costume business and depleting liquidity were additional headwinds.
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Wynn Resorts (WYNN) Q2 Earnings & Revenues Lag, Both Up Y/Y
Wynn Resorts, Limited (WYNN - Free Report) reported lower-than-expected second-quarter 2024 results, wherein adjusted earnings and revenues missed the Zacks Consensus Estimate. On the other hand, the metrics rose year over year.
The quarter’s results reflect strong contributions from the Wynn Palace, Wynn Macau and Las Vegas operations, partially offset by softer contributions from the Encore Boston Harbor operations.
The company’s continuous investments in expanding the business operations on a global scale along with ensuring shareholder value are commendable. This prudent attitude positions WYNN well for growth in 2024 and beyond.
Q2 Earnings & Revenues
The company reported adjusted earnings per share (EPS) of $1.12, which missed the Zacks Consensus Estimate of $1.23 by 8.9%. In the prior-year quarter, the company reported an adjusted EPS of 91 cents.
Wynn Resorts, Limited Price, Consensus and EPS Surprise
Wynn Resorts, Limited price-consensus-eps-surprise-chart | Wynn Resorts, Limited Quote
Quarterly operating revenues of $1.73 billion also marginally missed the consensus mark of $1.75 billion by 0.9%. That said, the top line increased 8.1% on a year-over-year basis.
Wynn Palace Operations
Wynn Palace’s operating revenues increased to $548 million from $468.4 million reported in the prior-year quarter. Our model predicted segmental revenues at $499.2 million.
Casino revenues totaled $445 million compared with $365.3 million reported in the prior-year quarter. Rooms and food and beverage revenues grew 0.2% and 18.1% year over year to $50.2 million and $29.8 million, respectively. During the quarter, entertainment, retail and other revenues fell 16.9% year over year to $23.1 million.
In the VIP segment, table games turnover was $2.81 billion, down 7.6% year over year. VIP table games win rate (based on turnover) was 4.1% compared with 4.24% reported in the prior-year quarter. Table drop in the mass market segment was $1.74 billion compared with $1.51 billion reported in the prior-year quarter. Table game wins in mass market operations amounted to $409.4 million compared with $305.8 million reported in the prior-year quarter.
During the reported quarter, revenue per available room (RevPAR) increased 1.6% year over year to $312. Occupancy levels in the segment were 98.9% compared with 96.5% in the prior-year quarter. The average daily rate (ADR) was $316, down 0.6% on a year-over-year basis.
Wynn Macau Operations
Wynn Macau’s operating revenues amounted to $337.3 million compared with $301.6 million in the prior-year quarter. For this business operation, we projected year-over-year growth of 17% to $352.9 million.
Casino revenues were $280.7 million, up 15.5% year over year. On a year-over-year basis, revenues from rooms declined 9.1% to $23.7 million while revenues from food and beverage increased 36.4% to $20 million. Entertainment and retail and other revenues declined 28.2% year over year to $12.8 million.
Table games turnover in the VIP segment declined 16.3% year over year to $1.16 billion. The VIP table games win rate (based on turnover) was 2.19%, down from 4.16% reported in the prior-year quarter.
Table drop in the mass market segment was $1.6 billion compared with $1.22 billion in the prior-year quarter. Table games win in the mass market category was $280.8 million compared with $216.4 million in the prior-year quarter.
During the reported quarter, RevPAR declined 10% year over year to $234. Occupancy levels in the segment were 99.4% compared with 96.8% in the prior-year quarter. ADR was $236, down 12.3% year over year.
Las Vegas Operations
Operating revenues from Las Vegas operations were $628.7 million compared with $578.1 million in the prior-year quarter. Our projection for the metric was $616.6 million.
Casino revenues declined 6% year over year to $129.7 million. Revenues from food and beverage grew 6.8% to $208.4 million. Revenues for rooms and entertainment, retail and other increased 15.8% and 26% year over year to $205.9 million and $84.7 million, respectively.
Table games drop was down 4.2% year over year to $536.5 million. Table game wins also decreased 8.2% year over year to $117.5 million. Table games win percentage of 21.9% was down from 22.9% in the prior-year quarter.
RevPAR rose 15.8% year over year to $484. The occupancy rate was 90.9%, up from 90.6% in the prior-year period. ADR was $532, up 15.2% year over year.
Encore Boston Harbor
Operating revenues from Encore Boston Harbor operations amounted to $212.6 million compared with $221.9 million reported in the prior-year quarter. Our projection for the metric was $230.8 million.
Casino revenues declined 7.9% to $153.6 million. Revenues from rooms increased 9.7% year over year to $24.7 million. Revenues from food and beverage also increased 5.4% to $23.2 million. Entertainment, retail and other revenues increased 5.1% year over year to $11.2 million.
During the quarter, table games win percentage of 19.6% was down from 22.3% reported in the prior-year quarter.
RevPAR increased 9.7% year over year to $407. The occupancy rate was 96.5%, up from 92.7% in the prior-year quarter. ADR was $422, up 5.5% year over year.
Operating Performance
During the second quarter, adjusted property EBITDAR was $571.7 million compared with $524.5 million in the prior-year quarter.
Adjusted property EBITDAR from total Macau operations totaled $280.4 million compared with $246.2 million in the prior-year quarter. Adjusted property EBITDAR from Las Vegas operations was $230.3 million compared with $224.1 million in the year-ago quarter. Adjusted property EBITDAR from Encore Boston Harbor was $62.1 million compared with $69.1 million in the prior-year quarter.
Cash Position
As of Jun 30, 2024, Wynn Resorts’ cash and cash equivalents totaled $2.38 billion compared with $2.88 billion reported as of Dec 31, 2023.
Total current and long-term outstanding debt at the end of the second quarter amounted to $11.03 billion. The figure included $1.46 billion of Wynn Las Vegas-related debt, $6.44 billion of Macau debt, $2.52 billion of Wynn Resorts Finance debt and $614.4 million of debt held by the retail joint venture, which the company consolidated.
Zacks Rank & Recent Consumer Discretionary Releases
Wynn Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hyatt Hotels Corporation (H - Free Report) delivered second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company’s top line declined year over year.
The timing of Easter, renovations at major resort properties and the lingering impact of the 2023 Maui wildfires affected the company's performance. As of Jun 30, 2024, Hyatt had a pipeline of executed management or franchise contracts of approximately 670 hotels (or about 130,000 rooms). Management anticipates 2024 system-wide RevPAR to rise 3-4% from the 2023 level, down from the prior estimated range of 3-5%.
MGM Resorts International (MGM - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The bottom and top lines increased on a year-over-year basis.
During the quarter, the company exhibited strong financial performance and growth, setting a record for MGM China Adjusted Property EBITDAR. Also, it stated the benefits of Las Vegas expansion and strategic partnership with Marriott. MGM’s meetings and convention business witnessed improvement, supported by the remodel of Mandalay Bay. Given the strategic initiatives and significant progress, management is optimistic and anticipates the momentum to continue for the remainder of 2024.
JAKKS Pacific, Inc. (JAKK - Free Report) reported second-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the bottom and top lines missed the consensus estimate for the third straight quarter.
The company’s performance was hindered by soft sales in the Toys/Consumer Products segment due to lower sales in North America, accompanied by a fall in the Costumes sales. Furthermore, increased SG&A expenses, risks underlining the Costume business and depleting liquidity were additional headwinds.