Wynn Suffers After Hours

Oct.20.11 | About: Wynn Resorts, (WYNN)

If you had told me coming into the week, that there would be disappointments by IBM (NYSE:IBM), Apple (NASDAQ:AAPL) and Goldman Sachs (NYSE:GS), and the market would only be down this much after such a huge run, I'd have called you a liar.

Wynn Resorts (NASDAQ:WYNN) is the next to not quite be up to snuff. There is some confusion on the EPS figure due to debt extinguishment, but the 'headline' number is $1.05 v $1.18 estimated. I don't kow if analysts had this in their number or not but ...

  • The net loss attributable to Wynn Resorts of $33.5 million, or ($0.27) per diluted share in the third quarter of 2010 included a $64.2 million loss on extinguishment of debt.

If not, that $1.05 becomes $1.32. (note - looking at this over again, I believe there is a typo as it says third quarter of 2010 rather than third quarter of 2011)

Revenue was essentially in line at $1.3B vs $1.29B. Macau continues to be the star, with a 41% year over year gain in revenue at $951M in revenue - we can see how dominant Macau is becoming in the revenue stream. Occupancy rate was almost 94% versus 87.6% the year before, so no slowdown in the region yet, unlike what investors are worried about.

Las Vegas revenue was only up 3.7% year over year. Meh. Occupancy up slightly from just below 88% to just above.

The stock is currently down about 5.5% in after hours, after a 5.5% drop during the normal session. Technically you can see the 50 and 100 day moving averages have converged to provide a ceiling the past two weeks, while everything else was rallying. It's not a great chart setup right now.

Full report here

Disclosure: No position