Wynn Resorts (WYNN) Q2 Macau Results Show Weakness
On Monday, Wynn Resorts (NASDAQ: WYNN) reported Q2 results that fell short of consensus. In the view of analyst Cameron McKnight of Wells Fargo, shares could decline post earnings. However, he remains positive on the stock.
"WYNN reported Q2 EBITDA of $426MM, vs. consensus of $415MM. Macau property EBITDA of $290MM was 5% below our and consensus estimates of $305MM. Normalized for VIP hold, Macau results were 6% below. Las Vegas EBITDA of $136MM was 25% above our and consensus estimates of $109MM," said McKnight.
"In our view, Macau results were below relatively soft Street expectations and the ~$300MM quarterly EBITDA WYNN had been runrating. We expect shares to trade off, despite better than expected Las Vegas profitability. That said, we continue to like WYNN's strong dividend growth pipeline, and expect total dividends could hit $11/share by 2017 once Cotai opens," he added.
Wells Fargo has an Outperform rating on Wynn Resorts.
For an analyst ratings summary and ratings history on Wynn Resorts (NASDAQ: WYNN) click here. For more ratings news on Wynn Resorts click here.
Shares of Wynn Resorts closed at $130.98 yesterday, with a 52 week range of $90.11-$144.99.
"WYNN reported Q2 EBITDA of $426MM, vs. consensus of $415MM. Macau property EBITDA of $290MM was 5% below our and consensus estimates of $305MM. Normalized for VIP hold, Macau results were 6% below. Las Vegas EBITDA of $136MM was 25% above our and consensus estimates of $109MM," said McKnight.
"In our view, Macau results were below relatively soft Street expectations and the ~$300MM quarterly EBITDA WYNN had been runrating. We expect shares to trade off, despite better than expected Las Vegas profitability. That said, we continue to like WYNN's strong dividend growth pipeline, and expect total dividends could hit $11/share by 2017 once Cotai opens," he added.
Wells Fargo has an Outperform rating on Wynn Resorts.
For an analyst ratings summary and ratings history on Wynn Resorts (NASDAQ: WYNN) click here. For more ratings news on Wynn Resorts click here.
Shares of Wynn Resorts closed at $130.98 yesterday, with a 52 week range of $90.11-$144.99.