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Las Vegas, Nevada-based Wynn Resorts, Limited (WYNN) designs, develops, and operates integrated resorts. Valued at $8.9 billion by market cap, the company offers amenities such as guest rooms and suites, restaurants, golf course, spa, bars, meeting and convention space, night clubs, and recreation and leisure facilities. The luxury resort and casino company is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Feb. 5.
Ahead of the event, analysts expect WYNN to report a profit of $1.29 per share on a diluted basis, down 32.5% from $1.91 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect WYNN to report EPS of $4.73, up 15.4% from $4.10 in fiscal 2023. Its EPS is expected to rise marginally year over year to $4.77 in fiscal 2025.
WYNN stock has underperformed the S&P 500’s ($SPX) 22% gains over the past 52 weeks, with shares down 13.6% during this period. Similarly, it underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 27.7% gains over the same time frame.
WYNN's lackluster performance can be attributed to a drop in revenues from its Las Vegas and Wynn Palace businesses. Moreover, rising expenses in casino operations and room maintenance, as well as high general and administrative costs, have impacted the company's profitability.
On Nov. 4, WYNN reported its Q3 results and its shares closed down more than 9% in the following trading session. Its adjusted EPS of $0.90 missed Wall Street expectations of $1.17. The company’s revenue was $1.69 billion, missing Wall Street forecasts of $1.73 billion.
Analysts’ consensus opinion on WYNN stock is bullish, with a “Strong Buy” rating overall. Out of 15 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and three give a “Hold.” WYNN’s average analyst price target is $114.06, indicating a potential upside of 40.2% from the current levels.
