Wynn Resorts Gears Up for Q2 Earnings: What's in Store?

Wynn Resorts, Limited WYNN is scheduled to release second-quarter 2024 results on Aug 6, 2024, after the closing bell. In the previous quarter, the company delivered an earnings surprise of 11.2%.

How are Estimates Placed?

The Zacks Consensus Estimate for earnings is pegged at $1.23 per share, indicating a surge of 35.2% from 91 cents in the year-ago quarter.

The consensus mark for revenues is pegged at $1.75 billion, implying an increase of 9.6% from the year-ago quarter's figure.

Let's look at how things might have shaped up in the quarter.

Factors to Note

Wynn Resorts' second-quarter performance is likely to have benefited from increased visitor numbers and demand, especially in Las Vegas and Macau, along with higher gaming volumes as well as increased hotel occupancy. The strong mass casino activity, high direct VIP turnover, robust luxury retail sales and increased hotel revenues are anticipated to have aided the company's performance in the quarter to be reported. We expect revenues from Macau operations to rise 10.7% year over year to $852.2 million.

Increased visitation in the Las Vegas market and strong contributions from food and beverage and rooms are likely to have supported the company's performance. Per our model, revenues from Las Vegas operations are expected to rise 6.7% year over year to $616.6 million.

Strong contributions from Encore Boston Harbor might have aided the company's top line. The emphasis on development projects (including incremental parking, food and beverage and entertainment amenities) and increased sign-ups (to the Wynn Rewards loyalty program) have been a catalyst for WYNN. The momentum is expected to have driven the top-line growth. We expect revenues from Encore Boston Harbor to rise 4% year over year to $230.8 million in the second quarter.

However, challenges, such as a softer macroeconomic environment in China and high costs, are likely to have negatively impacted the company's performance. Our model predicts total operating expenses to increase 9.2% to $1,469.4 million.

What the Zacks Model Unveils

Our proven model doesn't conclusively predict an earnings beat for Wynn Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Wynn Resorts has an Earnings ESP of -1.01% and a Zacks Rank #3 at present.

Stocks With Favorable Combinations

Here are some stocks from the Zacks Consumer Discretionary space, which according to our model, have the right combination of elements to deliver an earnings beat this time around.

Hilton Grand Vacations HGV currently has an Earnings ESP of +16.12% and a Zacks Rank of 1.

HGV's earnings for the second quarter are expected to increase 4.7% year over year. The company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 7.2%.

Choice Hotels International, Inc. CHH currently has an Earnings ESP of +1.51% and a Zacks Rank of 2.

CHH's earnings for the second quarter are expected to increase 6.9% year over year. The company reported better-than-expected earnings in three of the trailing four quarters and missed the same in one, the average surprise being 4.6%.

Madison Square Garden Sports Corp. MSGS currently has an Earnings ESP of +203.00% and a Zacks Rank of 3.

MSGS' earnings topped the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, the average negative surprise being 496.2%. Earnings for the second quarter are expected to increase 184.6% year over year.

To read this article on Zacks.com click here.