Luxury hotels and casino operator Wynn Resorts (NASDAQ: WYNN) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
Wynn Resorts beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $1.84 billion, flat year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Wynn Resorts a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Wynn Resorts’s revenue to decline 7.1% year on year to $1.73 billion, a reversal from the 30.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.24 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wynn Resorts has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Wynn Resorts’s peers in the casino operator segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 2.1%, and MGM Resorts reported a revenue decline of 2.4%, in line with consensus estimates. Monarch traded up 2.2% following the results while MGM Resorts was down 1.8%.
Read our full analysis of Monarch’s results here and MGM Resorts’s results here.
There has been positive sentiment among investors in the casino operator segment, with share prices up 8.8% on average over the last month. Wynn Resorts is up 21.5% during the same time and is heading into earnings with an average analyst price target of $107.36 (compared to the current share price of $82.51).
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