Shares of Wynn Resorts (NASDAQ:WYNN) fell 5.5% in extended trading yesterday, despite the company reporting robust top- and bottom-line beats in Q3. Wynn attributed the solid quarterly performance to strong momentum in Las Vegas and Macau. The company witnessed strength in gaming, luxury retail, and hotel bookings.
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Wynn Resorts is a leading international luxury resort and casino operator known for its high-end properties and entertainment offerings.
Wynn’s Q3 Results in Detail
Wynn posted adjusted earnings of $0.99 per share, which came above the analysts’ estimates of $0.74 per share. However, the figure declined 17.5% from the prior-year quarter.
Meanwhile, the company’s revenues of $1.67 billion jumped 87.9% year-over-year and surpassed the Street’s estimates of $1.58 billion. WYNN’s Casino revenues saw a significant growth of 170.2% compared to the year-ago period.
The company also recorded a huge jump in its adjusted property EBITDAR (earnings before interest, tax, depreciation, amortization, and restructuring), a metric popularly used to compare hotel and casino performances. The figure came in at $530.4 million in the reported quarter, compared to $173.5 million recorded in last year’s quarter.
Following the earnings release, Deutsche Bank analyst Carlo Santarelli maintained a Buy rating on the stock with a price target of $124. Santarelli noted that EBITDA in Macau operations was below expectations.
Is WYNN Stock a Buy or Sell?
Wall Street analysts are optimistic about Wynn Resorts stock. It has a Strong Buy consensus rating based on four Buys and one Hold. The average WYNN stock price target of $123.40 implies 36.1% upside potential. The stock has gained 6.4% year-to-date.
