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Wynn Resorts (WYNN) to Report Q4 Earnings: What's in Store?

Zacks Equity Research

Wynn Resorts, Limited WYNN is likely to register decline in the bottom line when it reports fourth-quarter 2019 results. In the last reported quarter, the company delivered a negative earnings surprise of 80.7%.

Q4 Estimates

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 87 cents, lower than the year-ago quarter figure of $1.06. Over the past 30 days, the company’s earnings estimates have remained stable. The Zacks Consensus Estimate for revenues stands at $1,718 million, indicating an improvement of 2.2% from the prior-year quarter.

Factors at Play

Robust performance of Las Vegas operations is likely to get reflected in the company’s fourth-quarter performance. The Zacks Consensus Estimate for fourth-quarter revenues from Las Vegas operations is pegged at $404 million, suggesting growth of 2.5% from the year-ago reported figure. The company’s Las Vegas operations are likely to have benefited from increase in visitation, improving job scenario and consumer spending environment.
However, Wynn Palace operations are likely to have weighed on the fourth-quarter performance. The consensus mark for revenues from Wynn Palace is pegged at $625 million, indicating a decline of 15.7% from the year-ago comparable period.

Lower VIP turnover in Macau thanks to trade dispute and political tension, and unusually low table hold in Vegas are likely to have negatively impacted the company’s Macau operations.

The company’s dismal operating income from the Macau and Las Vegas operations hurt the company’s third-quarter bottom line. The trend is likely to have continued in the fourth quarter. 

Wynn Resorts, Limited Price and EPS Surprise

 

Wynn Resorts, Limited Price and EPS Surprise

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

What Does the Zacks Model Say?

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 odds of an earnings beat. But that's not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Wynn Resorts has an Earnings ESP of +4.05%.

Zacks Rank: The company has a Zacks Rank #5 (Strong Sell).

Stock With Favorable Combinations

Here are a few stocks from the Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post earnings beat in the third quarter:

The Madison Square Garden Company MSG has an Earnings ESP of +0.78% and a Zacks Rank #3.

Norwegian Cruise Line Holdings Ltd. NCLH has an Earnings ESP of +0.41% and a Zacks Rank #3.

SeaWorld Entertainment, Inc. SEAS has an Earnings ESP of +104.17% and a Zacks Rank #3.

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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
 
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
 
The Madison Square Garden Company (MSG) : Free Stock Analysis Report
 
SeaWorld Entertainment, Inc. (SEAS) : Free Stock Analysis Report
 
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