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.
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.
