Shares of Wynn Resorts (NASDAQ:WYNN) rose 2.8% in extended trading yesterday after the company reported a robust top- and bottom-line beat in its second-quarter results. Wynn attributed the solid quarterly performance to its Wynn Las Vegas and Encore Boston Harbor properties, as well as the ongoing post-pandemic momentum in Macau. The hotel and casino operator witnessed strength in gaming, luxury retail, and hotel operations across the board.
The company’s board also declared a quarterly cash common dividend of $0.25 per share, payable on August 31 to shareholders of record on August 21.
Wynn’s Q2FY23 Results in Detail
Wynn posted adjusted earnings of $0.91 per share, meaningfully better than the analysts’ estimates of $0.64 per share. The casino operator had posted an adjusted loss of $0.82 per share in the prior-year quarter.
Meanwhile, Wynn’s revenue of $1.60 billion jumped 76% year-over-year and surpassed the Street’s estimates of $1.54 billion. The company’s casino revenues saw a significant growth of 153.9% compared to the year-ago period.
The company also recorded a huge jump in its Adjusted Property EBITDAR (earnings before interest, tax, depreciation, amortization, and restructuring), a metric popularly used to compare hotel and casino performances. The figure came in at $524.5 million in the reported quarter, compared to $179.2 million recorded in Q2FY22.
Is WYNN a Buy, Sell, or Hold?
Following Wynn’s Q2 print, Deutsche Bank analyst Carlo Santarelli reaffirmed his Buy rating on WYNN stock and kept the price target unchanged at $140 (37.9% upside).
The analyst seems unfazed by the quarterly beat, which was largely expected as Wynn’s peers reported much bigger beats this quarter. Even so, Santarelli pointed out four attributes of Wynn’s growth story going forward. These include continued strength in the Macau market, management’s efforts to gain a higher market share in Macau, sustained margin improvements in Macau properties, and stability at the high-end Las Vegas properties.
Overall, on TipRanks, Wynn stock has a Moderate Buy consensus rating based on four Buys and three Hold ratings. The average Macau price target of $124.86 implies 22.9% upside potential from current levels. Meanwhile, WYNN stock has gained 18.9% year-to-date.
