Wynn Stock Could Get a Much-Needed Boost From Earnings | WYNN Message Board Posts


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Msg  27 of 27  at  8/10/2023 1:13:54 PM  by

jerrykrause


Wynn Stock Could Get a Much-Needed Boost From Earnings

Wynn Stock Could Get a Much-Needed Boost From Earnings

. 
; New York
 

Wynn Resorts' second-quarter earnings were full of positives that could reinvigorate the stock after weeks of sideways trading.

The stock (ticker: WYNN), up 23% this year as of Wednesday's close, jumped 4.5% to $106.07 at the open Thursday. It has traded between $99.53 and $109.54 since the beginning of June. Barron's wrote favorably about Wynn earlier this year, calling it a stock pick .

The company reported adjusted earnings of 91 cents a share, beating analysts' expectations of 64 cents per share. Revenue of $1.6 billion also beat estimates of $1.54 billion. The results were helped by Macau's accelerating recovery post-Covid and impressive quarters for its properties in Las Vegas and Boston.

CEO Craig Billings said he expects Wynn to imminently secure a license for its new resort in the United Arab Emirates. Wynn Al Marjan Island is expected to open in early 2027, and the company has said it could generate $450 million to $600 million annually in Ebitda, or earnings before interest, taxes, depreciation, and amortization.

On Wednesday, J.P. Morgan analyst Joseph Greff reaffirmed his Overweight rating shares, which he says can reach $142, adding that Wynn remains an "attractive mid-cap way to play the ongoing Macau recovery."

"We believe the present recovery in Macau is being driven by wealthy mainlanders, which is driving higher growth in the premium mass segment, in which Wynn has a significant presence and likely allows it to grow both market share and margins," he said.

Greff raised his estimates for Ebitda from Macau properties in the second half of 2023 by 6%.

Wynn's portfolio of Macau properties generated adjusted Ebitda of $246 million in the second quarter, up from a $90 million loss in the same period in 2022. That handily beat the FactSet estimate of $225 million, and shows a recovery to 72% of pre-Covid 2019 levels.

Wynn's U.S. properties are also humming along , with record-breaking quarters from Boston and Las Vegas. Its Encore Boston Harbor resort generated Ebitda of $69 million in the quarter, a new high, and its casino's gross gaming revenue of $193 million was also a record.

Hotel revenue for Wynn Las Vegas jumped 6% year over year to $177.8 million, the highest total for a second quarter.

 


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