[ Enlarge Image ]
Last night the company did not disappoint with another very good earnings report. Keep in mind this is essentially an Asian play at this point, with a U.S. kicker. That said, Vegas. is finally showing some signs of life.
- Wynn Resorts Ltd posted second-quarter profit and revenue that handily topped Wall Street estimates as revenue at its Wynn Macau unit soared 36.7 percent and business in Las Vegas improved.
- Driven by robust demand from mainland Chinese, gambling revenue in Macau, the only place in China where gambling is legal, surged 52 percent in June from a year earlier, according to government statistics.
- "They had stupendous results in both Macau and Vegas," said Janet Brashear, an analyst with Sanford C. Bernstein & Co. "Vegas is the biggest surprise," she said, with earnings "a lot more solid for the balance of the year than we might have expected."
- Adjusting for one-time items, Wynn earned $200.8 million, or $1.60 per share, beating analysts' average forecast of $1.04 per share, according to Thomson Reuters I/B/E/S.
- Wynn operates two casino-resorts in Las Vegas and two in Macau, where it is poised to begin construction on a third property on the Cotai Strip, pending final government clearance.
- Quarterly net revenue rose 32.4 percent to $1.37 billion from $1.03 billion last year. Analysts, on average, had expected $1.27 billion.
- Wynn's revenue in Las Vegas rose 22.8 percent to $390.8 millon. Adjusted property earnings rose 103.7 percent to $132.7 million. The rise was due to higher margins "really across the board," CFO Matt Maddox said on the call, including in gambling revenue, VIP services, and non-gaming segments including nightclubs, catering, and restaurants.
- The company's Macau revenue climbed 36.7 percent to $976.5 million, while property earnings rose 45.4 percent to $314.3 million in the second quarter.
- The shares have risen 59 percent so far this year.