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Earnings Update: Wynn Resorts, Limited (NASDAQ:WYNN) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

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Simply Wall St
·4 min read
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Wynn Resorts, Limited (NASDAQ:WYNN) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It definitely looks like a negative result overall with revenues falling 15% short of analyst estimates at US$370m. Statutory losses were US$7.10 per share, 62% bigger than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wynn Resorts after the latest results.

View our latest analysis for Wynn Resorts

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earnings-and-revenue-growth

After the latest results, the 15 analysts covering Wynn Resorts are now predicting revenues of US$5.31b in 2021. If met, this would reflect a sizeable 73% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 84% to US$2.85. Before this earnings announcement, the analysts had been modelling revenues of US$5.48b and losses of US$2.18 per share in 2021. So it's pretty clear the analysts have mixed opinions on Wynn Resorts after this update; revenues were downgraded and per-share losses expected to increase.

There was no major change to the consensus price target of US$94.88, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Wynn Resorts analyst has a price target of US$125 per share, while the most pessimistic values it at US$74.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wynn Resorts' past performance and to peers in the same industry. It's clear from the latest estimates that Wynn Resorts' rate of growth is expected to accelerate meaningfully, with the forecast 73% revenue growth noticeably faster than its historical growth of 6.2%p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 23% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Wynn Resorts to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at US$94.88, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Wynn Resorts analysts - going out to 2024, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Wynn Resorts you should be aware of, and 1 of them doesn't sit too well with us.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.