Wednesday, October 19, 2011

Wynn Resorts (WYNN) Suffering in After Hours

If you had told me coming into the week, that there would be disappointments by IBM, Apple, and Goldman Sachs, and the market would only be down this much after such a huge run, I'd have called you a liar.

Wynn Resorts (WYNN) is the next to not quite be up to snuff.  There is some confusion on the EPS figure due to debt extinguishment, but the 'headline' number is $1.05 v $1.18 estimated.  I don't kow if analysts had this in their number or not but ...
  • The net loss attributable to Wynn Resorts of $33.5 million, or ($0.27) per diluted share in the third quarter of 2010 included a $64.2 million loss on extinguishment of debt
If not, that $1.05 becomes $1.32.  (note - looking at this over again, I believe there is a typo as it says third quarter of 2010 rather than third quarter of 2011)

Revenue was essentially in line at $1.3B vs $1.29B.  Macau continues to be the star, with a 41% year over year gain in revenue at $951M in revenue - we can see how dominant Macau is becoming in the revenue stream.  Occupancy rate was almost 94% versus 87.6% the year before, so no slowdown in the region yet, unlike what investors are worried about.

Las Vegas revenue was only up 3.7% year over year. Meh.   Occupancy up slightly from just below 88% to just above.

The stock is currently down about 5.5% in after hours, after a 5.5% drop during the normal session.  Technically you can see the 50 and 100 day moving averages have converged to provide a ceiling the past two weeks, while everything else was rallying.  It's not a great chart setup right now.

Full report here.

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