Wynn Resorts' (WYNN) Q4 Earnings & Revenues Miss Estimates
Zacks Investment Research | Feb 06, 2020 08:32PM ET
Wynn Resorts, Limited (NASDAQ:WYNN) reported fourth-quarter 2019 results, wherein both earnings and revenues missed the respective Zacks Consensus Estimate for the second straight quarter. Following the results, the company’s shares declined 1.6% in after hour trading session on Feb 6.
The company reported an adjusted loss of 62 cents per share, missing the Zacks Consensus Estimate of earnings of 85 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 95 cents. In the reported quarter, the bottom line was hurt by operating loss at Encore Boston Harbor. Macau and Las Vegas operations also reported decline in operating income.
Revenues totaled $1,653.5 million, which lagged the Zacks Consensus Estimate of $1,718 million. The top line also decreased 2% thanks to dismal performance by Wynn Palace, Wynn Macau and Las Vegas operations.
Concurrent with the earnings announcement, the company declared a quarterly cash dividend of $1.00 per share. This dividend will be payable Mar 6, 2020, to its shareholders of record as of Feb 26.
Wynn Palace Disappoints
Revenues from Wynn Palace totaled $590 million in the fourth quarter, down 20.3% year over year. Casino revenues amounted to $490.4 million, down 23%. Rooms, food and beverage, and entertainment, retail and other also declined 3.2%, 1.4%, 7.5%, to $43.2 million, $29.7 million and $26.7 million, respectively.
At the VIP segment, table games turnover was $9.31 billion, down 42.4% year over year. VIP table games win rate (based on turnover) was 3.07%, above the expected range of 2.7-3% but below 3.25% witnessed in the year-ago quarter. Table drop at the mass market segment was $1.25 billion, up 3.6% from the year-ago quarter. Furthermore, table games win in mass market operations amounted to $315.4 million, up 2.6% year over year.
Notably, average daily rate (ADR) came in at $268 (down 3.2%), occupancy was 96.9% (down 30 basis points year over year) and revenue per available room (RevPAR) was $260 (down 3.3%).
Wynn Macau Operations
Wynn Macau revenues were down 5.1% year over year to $525.4 million in the fourth quarter on account of decrease in casino, rooms, food and beverage, and entertainment, retail and other revenues.
Notably, casino revenues in the reported quarter dipped 1.7% to $455.9 million. Rooms, food and beverage, and entertainment, retail and other revenues declined 5.8%, 1.4% and 13%, to $28.3 million, $20.9 and $20.2 million, respectively.
Table games turnover at the VIP segment declined 37.9% to $7.9 billion. Meanwhile, the VIP table games win rate (based on turnover) was 3.27%, above the expected range of 2.7-3.0% and higher than the year-ago quarter figure of 2.86%.
Get The News You Want
Table drop at the mass market segment was $1.39 billion, up 10.6% year over year. Table games win in the mass market category amounted to $283.2 million, up 10.7%.
Notably, average daily rate (ADR) came in at $291 (down 1%), occupancy was 99.3% (flat year over year) and revenue per available room (RevPAR) was $289 (down 1%).
Wynn Resorts, Limited Price, Consensus and EPS Surprise
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