Wynn Resorts, Limited WYNN is scheduled to release fourth-quarter 2024 results on Feb. 13, 2024, after the closing bell.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 23.1% and decreased 9.1% year over year. Meanwhile, revenues missed the consensus mark by 2.4%, but increased 1.2% year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Wynn Resorts’ earnings topped the consensus mark in two of the trailing four quarters and missed on two occasions, with an average surprise of 12.4%.
WYNN’s Q4 Earnings Estimates
The Zacks Consensus Estimate for WYNN’s fourth-quarter earnings is pegged at $1.27 per share, which decreased from $1.29 in the past 30 days. This implies a decline of 33.5% from the year-ago quarter’s reported figure of $1.91 per share.
For revenues, the consensus mark is pegged at $1.78 billion. The metric implies a decrease of 3.4% from the year-ago quarter’s figure.
Wynn Resorts, Limited Price and EPS Surprise
Wynn Resorts, Limited price-eps-surprise | Wynn Resorts, Limited Quote
Let us look at how things might have shaped up in the quarter to be reported.
Factors to Note Ahead of WYNN’s Q4 Earnings Release
Wynn Resorts’ fourth-quarter top line is likely to have decreased year over year due to a challenging operating environment in Macau. Intense competition in the region is expected to have affected revenue growth. We expect revenues from Macau operations (which comprised 51.5% of total operating revenues in the third quarter of 2024) to have declined 1.7% year over year to $894.9 million.
In Las Vegas, tough year-over-year comparisons might have further put pressure on the top line. Per our model, revenues from Las Vegas operations (comprised 35.9% of total operating revenues in the third quarter) are expected to have decreased 4.9% year over year to $662.8 million.
Meanwhile, elevated operating expenses are likely to have hurt the bottom line in the to-be-reported quarter. Increased casino and room expenses, along with high general and administrative costs, are expected to have weighed on profitability. Our model predicts total operating expenses in the fourth quarter to have increased 8.2% year over year to $1,604.3 million. Higher capital expenditures related to renovations and food and beverage enhancements might have further added to cost pressure.
However, the company's performance is expected to have been supported by increasing visitor numbers and demand, particularly in Las Vegas and Macau, along with solid nongaming demand, higher gaming volumes and increased hotel occupancy. Also, targeted investments in existing properties and enhancements in food and beverage offerings are expected to have contributed to the growth.
Strong activity in the mass casino segment, high direct VIP turnover, robust luxury retail sales and higher hotel revenues are expected to have helped the company’s results in fourth-quarter 2024. Per our model, Encore Boston Harbor revenues (accounting for 12.6% of total operating revenues in the third quarter) in the quarter-to-be-reported are likely to have increased 0.3% year over year to $217.9 million.
What Does the Zacks Model Unveil for WYNN?
Our proven model does not conclusively predict an earnings beat for Wynn Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP of WYNN: Wynn Resorts has an Earnings ESP of -4.35% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
WYNN’s Zacks Rank: The company currently has a Zacks Rank #3.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space, which according to our model, have the right combination of elements to deliver an earnings beat this season.
Life Time Group Holdings, Inc. LTH has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
LTH is expected to register a 10.5% increase in earnings for the to-be-reported quarter. It reported earnings beats in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.
Carnival Corporation & plc CCL currently has an Earnings ESP of +28.1% and a Zacks Rank of 3.
CCL reported earnings beats in each of the trailing four quarters, with an average surprise of 326.4%. Its earnings for the to-be-reported quarter are expected to increase 114.3%.
Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +22.22% and a Zacks Rank of 1.
RSI’s earnings for the to-be-reported quarter are expected to increase 800%. It reported earnings beats in each of the trailing four quarters, the average surprise being 225%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
