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Key Takeaways
- Wynn Resorts shares tumbled Tuesday after the casino operator missed third-quarter profit and sales forecasts.
- The weaker-than-expected results came as Wynn’s Las Vegas operations slowed.
- Wynn also invested $18.2 million in its site under construction in the United Arab Emirates.
Shares of Wynn Resorts (WYNN) slumped Tuesday after the hotel and casino operator posted third-quarter results that missed analysts’ estimates as its Las Vegas operations slowed.
The company reported a third-quarter loss of 29 cents per share, or adjusted earnings of 90 cents per share, with both measures missing analysts’ estimates compiled by Visible Alpha. Revenue climbed 1.3% year-over-year to $1.69 billion, also short of forecasts.
Wynn’s Miss Comes as Las Vegas Operations Slow
Wynn’s weaker-than-expected results came as its Las Vegas operating revenue declined 1.9% to $607.2 million, and adjusted property earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) dropped 7.7% to $202.7 million.
The company had mixed results at its Macau properties, with operating revenue increasing 19.3% at Wynn Macau and declining 1% at Wynn Palace. It was 1.8% higher at Encore Boston Harbor.
Wynn noted that during the quarter it invested $18.2 million in its 40%-owned joint venture being built in the United Arab Emirates. CEO Craig Billings said the company is confident the Wynn Al Marjan Island resort “will be a ‘must see’ tourism destination in the UAE.”
Wynn Resorts shares were down nearly 10% in Tuesday afternoon trading and have lost over 5% of their value since the start of the year.
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