Wynn Resorts Faces Earnings Decline as Analysts Forecast Q4 Challenges
Market Snapshot and Upcoming Earnings
Wynn Resorts, Limited (WYNN), headquartered in Las Vegas, Nevada, specializes in designing, developing, and operating integrated resorts. With a market cap of $8.9 billion, the company provides a range of luxury amenities, including guest accommodations, dining options, golf courses, spas, bars, meeting spaces, nightclubs, and recreational facilities. Wynn is set to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, February 5.
Anticipated Earnings Report
Before the announcement, analysts project that WYNN will report earnings of $1.29 per share, down 32.5% from last year’s $1.91 in the same quarter. Over the last four quarters, the company has met consensus expectations in two instances while falling short in the other two.
For the full fiscal year, estimates suggest WYNN will achieve earnings per share (EPS) of $4.73, reflecting a 15.4% increase from $4.10 in fiscal 2023. Beyond that, analysts forecast a slight rise in EPS to $4.77 for fiscal 2025.
Stock Performance and Market Comparison
Over the past year, WYNN stock has seen a decline of 13.6%, underperforming against the S&P 500’s gains of 22%. Similarly, it lags behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) return of 27.7% during the same period.
Challenges Facing Wynn
The company’s decline can be traced back to reduced revenues from its Las Vegas and Wynn Palace operations. Additionally, rising costs associated with casino operations, room maintenance, and extensive general and administrative expenses have further constrained profitability.
In a recent update on November 4, WYNN reported its Q3 results, which led to a more than 9% drop in shares during the following trading day. Its adjusted EPS of $0.90 was below the expected $1.17, with total revenue coming in at $1.69 billion, missing projections of $1.73 billion.
Analysts’ Outlook
Despite recent struggles, analysts remain optimistic about WYNN stock, offering a consensus rating of “Strong Buy.” Out of 15 analysts covering the stock, 11 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and three advise a “Hold.” The average analyst price target currently stands at $114.06, indicating a potential upside of 40.2% from where the stock is trading now.
On the date of publication,
Neha Panjwani
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