Wynn Resorts Narrows Losses, Revenue Misses Estimates. Here’s What One Analyst Says.

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Wynn Resorts CEO confident the market in Macau will benefit when Covid travel restrictions subside.

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Shares in Wynn Resorts rose on Wednesday, after the hotel and casino operator reported a narrower first-quarter net loss, even as it remains overshadowed by Covid-19 travel restrictions in Macau.

The Las Vegas-based company said first-quarter revenue rose to $953.3 million, up 29.4% from $736.7 million in the same quarter than last year, but that was lower than Wall Street estimates of $986.4 million.

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Wynn Resorts (ticker: WYNN) also narrowed its loss in the quarter to $183.3 million, or $1.59 a share, from a year-earlier loss of $281 million, or $2.53 a share. Adjusted losses were $1.21-a-share vs. a loss of $1.17-a-share expected by analysts surveyed by FactSet.

First-quarter revenue from the company’s casino business fell to $489.9 million, from $516.2 million a year ago.

Wynn Resorts stock rose almost 4% to $64.11 in premarket on Wednesday. It has fallen by more than 27% in the year to date.

JP Morgan analyst, Joseph Greff, said in a research note on Tuesday that much like the fourth quarter of 2021, operating results in the first quarter of 2022 “were about as we expected”

He cut his price target on the stock to $78 from $102 and added results were “very solid in Las Vegas and Boston and soft in Macau SAR, the latter market reflecting limited visitation due to COVID outbreaks and ensuing lockdowns/travel restrictions on the Mainland. ”

Chief executive Craig Billings said in a statement that the results reflected continued strength at both Wynn Las Vegas and Encore Boston Harbor. “In Macau, we remain confident that the market will benefit from the return of visitation when travel restrictions subside.”

Write to Lina Saigol at [email protected]


Credit: www.marketwatch.com /

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