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Wynn Resorts (WYNN) Gears Up for Q2 Earnings: A Beat in Store?

Zacks Equity Research

Wynn Resorts, Limited WYNN is scheduled to report second-quarter 2019 results on Aug 6, after the closing bell.

In the last reported quarter, the company delivered a positive earnings surprise of 1.3%. However, the bottom line missed the Zacks Consensus Estimate in the three of the trailing four quarters, the average miss being 12.6%.

Which Way are Estimates Headed?

The Zacks Consensus Estimate for second-quarter earnings stands at $1.42, indicating a 7.2% decline from year-ago quarter’s reported figure. Notably, the consensus mark has witnessed downward revisions of 2.1% over the past 30 days. For quarterly revenues, the Zacks Consensus Estimate is pegged at $1,600 million, implying approximately 0.8% decline from the prior-year quarter’s reported number.

Factors at Play

Wynn Resorts top line in the second quarter is likely to be impacted by a marginal decline in Wynn Macau revenues. However, Las Vegas operations and Wynn Palace are likely to report impressive numbers. The Zacks Consensus Estimate for second-quarter revenues from Las Vegas operations is pinned at $451 million, up 2% year over year. Moreover, revenues from Wynn Palace are expected to come in at $692 million, up 11.4% year over year.

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Apart from the gaming business in Macau, the company has been increasingly focusing on driving non-gaming revenues. Given the decent visitation pattern in Macau, infrastructure development and government’s efforts to boost tourism in Macau, non-gaming sources are expected to boost Wynn Resorts’ revenues in the to-be-reported quarter.

In order to boost performance in Las Vegas, the company has remodeled rooms at its properties and the baccarat pit. The number of visits has been increasing every year. With the improving job scenario and stabilizing gas prices, the consumer spending environment in domestic markets is also improving. Backed by the optimism surrounding tourism in Las Vegas and increasing visitation pattern, revenues are likely to grow in the second quarter.

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

Our Model Suggests a Beat

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Wynn Resorts has an Earnings ESP of +2.65% and a Zacks Rank #3, a combination that suggests that the company is likely to beat estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Consumer Discretionary sector that investors may consider as our model shows that these too have the right combination of elements to come up with an earnings beat in the to-be-reported quarter:

SeaWorld SEAS has an Earnings ESP of +11.01% and a Zacks Rank #2. The company is scheduled to report quarterly numbers on Aug 6.

Callaway Golf ELY has an Earnings ESP of +2.97% and a Zacks Rank #1. The company is scheduled to report quarterly numbers on Aug 8.

Playa Hotels & Resorts N.V. PLYA has a Zacks Rank #3 and an Earnings ESP of +50.00%. The company is scheduled to report quarterly numbers on Aug 7.

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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
 
Callaway Golf Company (ELY) : Free Stock Analysis Report
 
SeaWorld Entertainment, Inc. (SEAS) : Free Stock Analysis Report
 
Playa Hotels & Resorts N.V. (PLYA) : Free Stock Analysis Report
 
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