Factors Setting the Tone for Wynn Resorts' (WYNN) Q3 Earnings
Wynn Resorts, Limited WYNN is scheduled to release third-quarter 2023 results on Nov 9, 2023, after the closing bell. In the previous quarter, the company delivered an earnings surprise of 78.4%.
How are Estimates Placed?
The Zacks Consensus Estimate for Wynn Resorts' third-quarter earnings per share is pegged at 79 cents. WYNN reported a loss per share of $1.20 in the prior-year quarter.
Wynn Resorts, Limited Price and EPS Surprise
Wynn Resorts, Limited price-eps-surprise | Wynn Resorts, Limited Quote
For revenues, the consensus mark is pegged at nearly $1,550 million. The metric suggests an improvement of 74.2% from the year-ago quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors to Note
Wynn Resorts’ third-quarter earnings and revenues are expected to have increased year over year on the back of strong demand for sports betting, non-gaming revenue-boosting strategies and expansion efforts. Strength in mass casino drop, direct VIP turnover, luxury retail sales and hotel revenues are likely to have aided the company’s performance in the to-be-reported quarter.
Increased visitation and demand in the Macau region (owing to the easing of restrictions) are likely to have supported the company’s performance in the to-be-reported quarter. Per our model, revenues from Macau operations are expected to rise 362.7% year over year to $535 million in the third quarter. The company also emphasizes the Las Vegas market, making significant additions to the non-gaming business. We expect revenues from Las Vegas operations to rise 15.7% year over year to $629.8 million.
Strong contributions from Encore Boston Harbor are likely to have aided the company’s third-quarter top line. We expect revenues from Encore Boston Harbor to rise 6.8% year over year to $226.1 million in the quarter.
However, a rise in casino, room, food and beverage, entertainment, retail and other and general and administrative expenses are likely to have hurt the bottom line in the to-be-reported quarter. The company is cautious of wage inflation and interest rate increases. Our model predicts total operating expenses in the third quarter to increase 40.7% year over year to $1,326.7 million.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Wynn Resorts this time around. WYNN does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: Wynn Resorts has an Earnings ESP of -12.96%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat
PlayAGS, Inc. AGS has an Earnings ESP of +650.00% and a Zacks Rank of 2.
AGS’s earnings for the to-be-reported quarter are expected to be flat year over year. The company reported better-than-expected earnings in three out of the four quarters and remained flat on the remaining one occasion, the average surprise being 129.2%.
Red Rock Resorts, Inc. RRR has an Earnings ESP of +0.19% and a Zacks Rank of 3.
RRR’s earnings for the to-be-reported quarter are expected to increase by 23.9%. The company reported better-than-expected earnings in all of the trailing four quarters, the average surprise being 15.8%.
The Honest Company, Inc. HNST has an Earnings ESP of +16.67% and a Zacks Rank of 3.
HNST’s earnings for the to-be-reported quarter are expected to increase by 7.7%. The company reported lower-than-expected earnings in three out of the trailing four quarters and met expectations in the remaining quarter, the average negative surprise being 52.2%.
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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report
PlayAGS, Inc. (AGS) : Free Stock Analysis Report
The Honest Company, Inc. (HNST) : Free Stock Analysis Report
