U.S. markets closed
  • S&P 500

    4,119.21
    +42.61 (+1.05%)
     
  • Dow 30

    34,092.96
    +6.92 (+0.02%)
     
  • Nasdaq

    11,816.32
    +231.77 (+2.00%)
     
  • Russell 2000

    1,960.81
    +28.87 (+1.49%)
     
  • Crude Oil

    76.70
    -2.17 (-2.75%)
     
  • Gold

    1,950.70
    +21.20 (+1.10%)
     
  • Silver

    24.08
    +0.24 (+1.02%)
     
  • EUR/USD

    1.0994
    +0.0128 (+1.18%)
     
  • 10-Yr Bond

    3.3970
    -0.1320 (-3.74%)
     
  • GBP/USD

    1.2371
    +0.0055 (+0.44%)
     
  • USD/JPY

    128.9440
    -1.1240 (-0.86%)
     
  • BTC-USD

    23,763.77
    +841.20 (+3.67%)
     
  • CMC Crypto 200

    538.70
    +296.03 (+121.98%)
     
  • FTSE 100

    7,761.11
    -10.59 (-0.14%)
     
  • Nikkei 225

    27,346.88
    +19.77 (+0.07%)
     

Wynn Resorts (WYNN) Q1 Earnings & Revenues Miss Estimates

Wynn Resorts, Limited WYNN reported first-quarter 2022 results, with earnings and revenues missing the Zacks Consensus Estimate. Nevertheless, the metrics increased on a year-over-year basis.

Craig Billings, CEO of Wynn Resorts, Limited, stated, "Our first quarter results reflect continued strength at both Wynn Las Vegas and Encore Boston Harbor where our teams' unrelenting focus on five star hospitality and world class experiences combined with very strong customer demand to deliver a new first quarter record for Adjusted Property EBITDA at both properties."

Q1 Earnings & Revenues

The company reported an adjusted loss of $1.21 per share, wider than the Zacks Consensus Estimate of a loss of $1.15. In the prior-year quarter, the company reported an adjusted loss of $2.41 per share.

Wynn Resorts, Limited Price, Consensus and EPS Surprise

Wynn Resorts, Limited Price, Consensus and EPS Surprise
Wynn Resorts, Limited Price, Consensus and EPS Surprise

Wynn Resorts, Limited price-consensus-eps-surprise-chart | Wynn Resorts, Limited Quote

Revenues during the fourth quarter came in at $953.3 million, missing the Zacks Consensus Estimate of $1,001 million by 4.8%. In the prior-year quarter, the company delivered revenues of $736.7 million. The company benefitted from the solid contributions of Las Vegas and Encore Boston Harbor operations.

Wynn Palace Operations

During the first quarter, Wynn Palace revenues were $163.3 million compared with $237.3 million reported in the prior-year quarter. Casino revenues in the reported quarter totaled $114.4 million compared with $185.9 million reported in the prior-year quarter. Rooms and food and beverage revenues declined 18.7% and 2% year over year to $13.8 million and $11.4 million, respectively. During the quarter under review, entertainment, retail and other revenues increased 4% year over year to $23.6 million.

In the VIP segment, table games turnover was $965.6 million, down 56.1% year over year. VIP table games win rate (based on turnover) was 2.05%, lower than the expected range of 3.1-3.4%. The figure was below 4.38% reported in the prior-year quarter. Table drop at the mass market segment was $531.9 million compared with $607.5 million reported in the prior-year quarter. Table games win in mass market operations amounted to $111.2 million compared with $131.6 million reported in the prior-year quarter.

During the reported quarter, RevPAR declined 21.3% year over year to $85. Occupancy levels in the segment came in at 47.2% compared with 60.4% reported in the prior-year quarter. The average daily rate (ADR) during the quarter came in at $180, up 1.1% on a year-over-year basis.

Wynn Macau Operations

During the first quarter, Wynn Macau’s revenues amounted to $135.1 million compared with $179.7 million reported in the prior-year quarter. The downside was primarily due to a fall in casino, rooms, and entertainment, retail and other revenues.

Casino revenues in the reported quarter were $102.4 million, down 26.3% year over year. Rooms and entertainment, retail and other revenues declined 36.1% and 19.9% year over year to $9.4 million and $14.9 million, respectively. During the quarter, food and beverage revenues increased 12.8% year over year to $8.4 million.

Table games turnover in the VIP segment declined 50.8% year over year to $887.1 million. The VIP table games win rate (based on turnover) was 3.84%, falling above the expected range of 3.1-3.4%. The figure was above 3.25% reported in the prior-year quarter.

Table drop in the mass market segment was $469.1 million compared with $590.9 million reported in the prior-year quarter. Table games win in the mass market category was $82.3 million compared with $105.2 million reported in the prior-year quarter.

During the reported quarter, RevPAR fell 36.1% year over year to $94. Occupancy levels in the segment came in at 49.8% compared with 60.8% in the prior-year quarter. However, ADR came in at $188, down 22.3% year over year.

Las Vegas Operations

During the first quarter, revenues from Las Vegas operations were $441.2 million compared with $178.7 million reported in the year-ago quarter.

Casino revenues surged 55.5% year over year to $124.3 million. Revenues from food and beverage, rooms and entertainment, retail and other increased 239.4%, 230.6% and 160.4% year over year to $136 million, $131.5 million and $49.4 million, respectively.

Table games drop increased 68.8% year over year to $547.9 million. Table games win surged 68.5% year over year to $129.2 million. During the first quarter, table games win percentage of 23.6% was within the projected range of 22-26% and in line with the prior-year quarter’s levels.

During the quarter under review, RevPAR soared 184.6% year over year to $333. The occupancy rate came in at 76.9%, up from 35.3% reported in the prior-year quarter. ADR was $432, up 30.5% year over year.

Encore Boston Harbor

During the first quarter, revenues from Encore Boston Harbor operations amounted to $190.8 million compared with $130.1 million reported in the prior-year quarter. During the quarter, table games win percentage of 22.2% was above the projected range of 18-22%. The figure was also higher than 21.1% reported in the prior-year quarter.

During the reported quarter, RevPAR increased 33.2% year over year to $261. The occupancy rate came in at 80.5%, up from 71% reported in the prior-year quarter. ADR was $324, up 17.4% year over year.

Operating Performance

During the first quarter, adjusted property earnings before interests, taxes, depreciation and amortization (EBITDA) was $177.6 million compared with $58.9 million reported in the prior-year quarter.

In the quarter under review, adjusted property EBITDA from Macau totaled $(5.5) million against $43.9 million reported in the prior-year quarter. Adjusted property EBITDA from Las Vegas operations was $159.4 million compared with $28.1 million reported in the year-ago quarter. Adjusted property EBITDA from Encore Boston Harbor was $55.3 million compared with $30.4 million reported in the prior-year quarter.

Cash Position

As of Mar 31, 2022, Wynn Resorts’ cash and cash equivalents totaled $2.32 billion compared with $2.52 billion as of Dec 31, 2021.

Total current and outstanding debt at the end of the first quarter amounted to $11.92 billion. The figure included $3.13 billion of Wynn Las Vegas-related debt, $5.97 billion of Macau debt, $2.21 billion of Wynn Resorts Finance debt and $613 million of debt held by the retail joint venture, which the company consolidated.

Zacks Rank & Key Picks

Wynn Resorts currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Zacks Consumer Discretionary sector are Civeo Corporation CVEO, Bluegreen Vacations Holding Corporation BVH and Funko, Inc. FNKO.

Civeo sports a Zacks Rank #1 (Strong Buy) at present. The company has a trailing four-quarter earnings surprise of 1,565.1%, on average. Shares of the company have increased 43.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CVEO’s 2022 sales and earnings per share (EPS) suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels.

Bluegreen Vacations carries a Zacks Rank #2 (Buy). BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has increased 33.1% in the past year.

The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 11.5% and 28.7%, respectively, from the year-ago period’s reported levels.

Funko carries a Zacks Rank #2. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 17.3% in the past year.

The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 26.8% and 28.9%, respectively, from the year-ago period’s reported levels.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report

Civeo Corporation (CVEO) : Free Stock Analysis Report

Funko, Inc. (FNKO) : Free Stock Analysis Report

Bluegreen Vacations Holding Corporation (BVH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research