Wednesday, October 19, 2011

Wynn Resorts (WYNN) Suffering in After Hours

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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.



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