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Wynn Resorts (WYNN) to Report Q1 Earnings: What's in Store?

Zacks Equity Research
·4-min read

Wynn Resorts, Limited WYNN is scheduled to report first-quarter 2020 results on May 6. In the last reported quarter, the company reported a negative earnings surprise of 172.9%.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter is pegged at a loss of $1.05 per share, against earnings of $1.61 reported in the prior-year quarter. Over the past 30 days, the company’s earnings estimates have witnessed sharp downward revisions. The Zacks Consensus Estimate for revenues stands at $1,093 million, indicating a decline of 33.9% from the year-ago reported figure.

Factors to Note

Wynn Resorts results in the quarter to be reported are likely to reflect massive impact of the coronavirus pandemic. Visitation at Macau has been declining sharply ever since the outbreak of coronavirus in China. In Macau, casinos were shutdown beginning Feb 5 on account of the same. Casinos were reopened (on a reduced basis) on Feb 20. Although casinos were fully opened on Mar 20, travel restrictions and limited number of tables have been hurting the company. During the shutdown period, the company incurred operating expenses of nearly $2.5 million per day, excluding cash interest expense of roughly $0.5 million per day.

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The Zacks Consensus Estimate for first-quarter revenues from Wynn Macau operations is pegged at $255 million, suggesting a sharp decline of 51.3% from the year-ago reported figure. Wynn Palace operations might have weighed on the first-quarter performance. The consensus mark for revenues from Wynn Palace is pegged at $303 million, indicating a decline of 59.9% from the year-ago quarter.

Wynn Resorts business in the United States has also been impacted by the COVID-19 outbreak. In an effort to contain the spread of this deadly virus, the company’s Encore Boston Harbor and Wynn Las Vegas closed its operation on Mar 15 and Mar 17, respectively. The Zacks Consensus Estimate for first-quarter revenues from Las Vegas operations is pegged at $409 million, suggesting growth of 2% from the year-ago reported figure.

The company’s dismal operating income from the Macau and Las Vegas operations, and rise in costs are likely to have weighed on the first-quarter performance.

Wynn Resorts, Limited Price and EPS Surprise

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 Our Model Suggests

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 -104.20%.

Zacks Rank: The company has a Zacks Rank #3.

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 this quarter.

GP Strategies Corporation GPX has an Earnings ESP of +58.33% and a Zacks Rank #3, at present.

BJ's Wholesale Club Holdings, Inc. BJ currently has an Earnings ESP of +8.50% and a Zacks Rank #2.

Activision Blizzard, Inc. ATVI currently has an Earnings ESP of +10.39% and a Zacks Rank #2.

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Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
 
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
 
Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
 
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