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Wynn (WYNN) Up 2.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Wynn Resorts (WYNN - Free Report) . Shares have added about 2.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Wynn due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Wynn Resorts Q2 Earnings & Revenues Lag, Both Up Y/Y
Wynn Resorts 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.
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.
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.
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.
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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Wynn has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Wynn has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Wynn is part of the Zacks Gaming industry. Over the past month, Electronic Arts (EA - Free Report) , a stock from the same industry, has gained 1.9%. The company reported its results for the quarter ended June 2024 more than a month ago.
Electronic Arts reported revenues of $1.26 billion in the last reported quarter, representing a year-over-year change of -20%. EPS of $0.52 for the same period compares with $1.14 a year ago.
For the current quarter, Electronic Arts is expected to post earnings of $2 per share, indicating a change of +37% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Electronic Arts has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Wynn (WYNN) Up 2.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Wynn Resorts (WYNN - Free Report) . Shares have added about 2.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Wynn due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Wynn Resorts Q2 Earnings & Revenues Lag, Both Up Y/Y
Wynn Resorts 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.
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.
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.
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.
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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Wynn has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Wynn has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Wynn is part of the Zacks Gaming industry. Over the past month, Electronic Arts (EA - Free Report) , a stock from the same industry, has gained 1.9%. The company reported its results for the quarter ended June 2024 more than a month ago.
Electronic Arts reported revenues of $1.26 billion in the last reported quarter, representing a year-over-year change of -20%. EPS of $0.52 for the same period compares with $1.14 a year ago.
For the current quarter, Electronic Arts is expected to post earnings of $2 per share, indicating a change of +37% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Electronic Arts has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.