Non Gaming Revenues to Boost Wynn Resorts (WYNN) Q3 Earnings
Wynn Resorts, Limited WYNN is expected to release third-quarter fiscal 2018 results on Oct 25.
Notably, the company’s earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 1.7%.
Q3 Expectations
The question lingering in investors’ minds is whether Wynn Resorts will be able to deliver a positive earnings surprise in the quarter to be reported. Notably, the company is expected to post quarterly earnings of $1.77 in the third quarter, which marks an increase of 16.5% from the year-ago quarter. Revenues are estimated at $1.64 billion, reflecting a rise of 1.61% from the year-ago quarter.
Let’s delve deeper to find out how the company’s top and bottom line will shape up this earnings season.
Factors at Play
Wynn Resorts has been undertaking several initiatives and building newer concepts to boost non-gaming revenues in Macau. This in turn is expected to drive the company’s top line in the third quarter of 2018. Also, infrastructure development and government’s efforts to boost tourism in Macau are expected to aid Wynn Resorts’ top-line performance.
Per the company, revenues from Las Vegas operations are expected to be flat with the prior-year quarter due to event-driven factors. In fact, the Zacks Consensus Estimate for third-quarter revenues from Las Vegas operations is pegged at $445 million, marking a rise of 0.7% from the last reported quarter. Also, optimism surrounding tourism in Las Vegas and increasing visitation pattern are likely to drive revenues over the long haul.
Moreover, the number of domestic visits has been increasing every year. Also, improved consumer spending in the domestic markets is expected work in favor of the company.
Meanwhile, the company’s EBITDA at Wynn Palace has been rising given its operational excellence which is turn is expected to boost earnings in the to-be-reported quarter.
Wynn Resorts, Limited Price and EPS Surprise
Wynn Resorts, Limited Price and EPS Surprise | Wynn Resorts, Limited Quote
What Our Model Indicates
Our proven model does not suggest a beat for Wynn Resorts in the quarter to be reported. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for that to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: The Earnings ESP for the company is -3.96% as the Most Accurate Estimate is pegged at $1.70 while the Zacks Consensus Estimate is at $1.77. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Wynn Resorts has a Zacks Rank #5 (Strong Sell). Note that we caution against stocks with a Zacks Rank #4 (Sell) or 5 going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are some companies in the Consumer Discretionary sector, which according to our model also have the right combination of elements to post earnings beat in their quarterly reports:
DISH Network Corporation DISH has an Earnings ESP of +11.61% and a Zacks Rank #1. The company is expected to report quarterly numbers on Nov 8.
Callaway Golf Company ELY has an Earnings ESP of +71.42% and a Zacks Rank #1. The company is scheduled to report quarterly results on Oct 24.
JAKKS Pacific, Inc. JAKK has an Earnings ESP of +30.61% and a Zacks Rank #3. The company is scheduled to report quarterly numbers on Oct 25. You can see the complete list of today’s Zacks #1 Rank stocks here.
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