Wynn (WYNN) Tumbles as Macau Results Look Weak

October 27, 2009 11:49 AM EDT

After gapping less than 3% lower at this morning's open, shares of Wynn Resorts (Nasdaq: WYNN) plunged to as low as $56.57, down more than 10% from yesterday's close, amid soft Q3 results. Adding to today's downside, sales at the casino operator's Macau unit disappointed investors. The stock has now bounced slightly and is currently down 6.8% to $58.78.

Let's take a look at some of the metrics from the Macau unit:

• Q3 sales for the region came in at $448.5 million, down 5.5% from the $474.8 million reported in the same quarter last year
  
• adj-property EBITDA came in at $128.2 million, up from $106.3 million in Q308
  
• Wynn Macau achieved an average daily rate of $263 this quarter, which compares to $272 in the same quarter last year. Occupancy was up 300 basis points to 89.2% this quarter, with RevPAR coming in at $235, slightly higher than the $234 reported in Q308.

On the analyst front, KeyBanc noted that when adjusting for certain items -- above average luck at Las Vegas tables (23.7% hold vs. about 21% normal) and a tax benefit of $10 million -- EPS for the company as a whole actually came in around $0.10. This adjusted level is below the Q3 Street consensus of $0.11.

Update:
Traders are now attributing today's slight mid-day rise to reassuring comments from CEO Steve Wynn on the company's Q3 conference call. Click for a summary of some highlights from the call.

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