Home Mutual Funds Wynn Resorts Stock Plunges After Casino Operator’s Profit and Sales Miss Estimates

Wynn Resorts Stock Plunges After Casino Operator’s Profit and Sales Miss Estimates

by admin

Wynn Resorts Stock Plunges After Casino Operator’s Profit and Sales Miss Estimates

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.

TradingView


Source link

related posts

Leave a Comment