Yahoo Finance Factors Setting the Tone for Wynn Resorts' (WYNN) Q1 Earnings
Wynn Resorts, Limited WYNN is scheduled to report first-quarter 2023 results on May 9, 2023, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 5.1%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the first-quarter bottom line is pegged at a loss of 18 cents per share, indicating an improvement of 85.1% from a loss of $1.21 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,254 million. The metric suggests an improvement of 31.6% from the year-ago quarter’s figure.
Wynn Resorts, Limited Price and EPS Surprise
Wynn Resorts, Limited price-eps-surprise | Wynn Resorts, Limited Quote
Let's look at how things have shaped up in the quarter.
Factors to Note
Wynn Resorts’ first-quarter performance is likely to have benefited from sports-betting expansion, non-gaming revenue-boosting strategies and marketing initiatives. This and the increased visitation (in the Las Vegas market), improved bookings (backed by strength in ADR’s) and strong recovery in Macau region (owing to the easing of restrictions) are likely to have aided the company’s performance in the to-be-reported quarter. We expect revenues from Las Vegas operations to rise 50.2% year over year (to $662.7 million) in the first quarter.
During the previous quarter, the company reported an uptick in visitation and demand in the Macau region. The company stated that gross gaming revenue (or GGR) market share in January was consistent with 2019 levels. Given a rise in migration of former junket customers into direct and the premium mass component of business, the momentum is likely to have continued in the to-be-reported quarter.
Strong contributions from Encore Boston Harbor might have aided the company’s first-quarter top line. During the previous quarter, the company launched a retail sports betting at Encore Boston Harbor and generated approximately $0.5 million per day in handle in the first six days. It also reported a 30% rise in Wynn Rewards members sign-up. The emphasis on development projects (including incremental parking, food and beverage and entertainment amenities) and strategic marketing campaigns are likely to have paved a path for new customer acquisition in the to-be-reported quarter. We expect revenues from Encore Boston Harbor to rise 10.5% year over year (to $210.7 million) in the first quarter.
What the Zacks Model Unveils
Our proven model predicts 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.
Earnings ESP: Wynn Resorts has an Earnings ESP of +105.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
PlayAGS, Inc. AGS has an Earnings ESP of +36.17% and sports a Zacks Rank #2.
Shares of PlayAGS have declined 11.4% in the past year. AGS’ earnings beat estimates in each of the trailing four quarters, the average surprise being 133.3%.
Choice Hotels International, Inc. CHH has an Earnings ESP of +11.89% and a Zacks Rank #3.
The stock has increased 2.8% in the past year. CHH’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 3.5%.
DISH Network Corporation DISH has an Earnings ESP of +21.55% and a Zacks Rank #3.
Shares of DISH Network have declined 66.6% in the past year. DISH’s earnings surpassed estimates thrice in the trailing four quarters and missed once, the average surprise being 63.4%.
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DISH Network Corporation (DISH) : Free Stock Analysis Report
Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
PlayAGS, Inc. (AGS) : Free Stock Analysis Report
