Wynn Resorts Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Wynn Resorts (NAS: WYNN) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Wynn Resorts met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.

Gross margins dropped, operating margins grew, net margins increased.

Revenue details
Wynn Resorts reported revenue of $1.34 billion. The 15 analysts polled by S&P Capital IQ expected revenue of $1.36 billion. Sales were 8.6% higher than the prior-year quarter's $1.24 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.55. The 22 earnings estimates compiled by S&P Capital IQ forecast $1.29 per share on the same basis. GAAP EPS of $1.52 for Q4 were 67% higher than the prior-year quarter's $0.91 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.7%, 11,410 basis points worse than the prior-year quarter. Operating margin was 20.4%, 100 basis points better than the prior-year quarter. Net margin was 14.2%, 500 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.37 billion. On the bottom line, the average EPS estimate is $1.39.

Next year's average estimate for revenue is $5.67 billion. The average EPS estimate is $5.93.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 882 members out of 1,238 rating the stock outperform, and 356 members rating it underperform. Among 321 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 236 give Wynn Resorts a green thumbs-up, and 85 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wynn Resorts is outperform, with an average price target of $156.09.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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