Wynn Resorts Beats Expectations with Impressive Q1 2024 Earnings

Wells Fargo's Daniel Politzer raised their price target on Wynn Resorts (NASDAQ: WYNN) by 2.4% from $125 to $128 on 2024/05/08. The analyst maintained their Strong Buy rating on the stock.

In a summary of Wynn Resorts' Q1 2024 earnings report, Politzer highlighted that the company's EBITDA was 7% above both Wells Fargo's and the Street's estimates. This outperformance was attributed to favorable hold, strong demand trends, and impressive operating expense control. Politzer also noted that management's commentary on Macau's Q2 was "encouraging," and that Las Vegas remains stable while EBH Capex is temporarily on hold.

Wynn Resorts reported impressive Q1 2024 financial results, beating expectations across the board. The company reported earnings per share (EPS) of $1.59, surpassing the Zacks Consensus Estimate of $1.43 and showing a significant increase of 448.3% compared to Q1 2023's $0.29. Revenue for the quarter came in at $1.86 billion, exceeding the Zacks Consensus Estimate of $1.77 billion and representing a 30.9% increase from Q1 2023's $1.42 billion.

During the earnings call and press release, management did not provide specific financial guidance. However, CEO Craig Billings expressed confidence in the company's outlook, stating that the strong momentum experienced in 2023 continued to build in Q1. Billings highlighted that Adjusted Property EBITDAR reached a new all-time record and emphasized the investments made in properties, the team, and unique programming to extend the company's leadership position in each market. Additionally, progress on the hotel tower construction at Wynn Al Marjan Island in the UAE was noted, with expectations that it will become a significant tourism destination.

In addition to Wells Fargo, other analysts also updated their ratings and price targets on Wynn Resorts on May 8, 2024. Citigroup's George Choi raised their price target by 4.5% from $132 to $138 while maintaining a Strong Buy rating on the stock. Stifel Nicolaus's Steven Wieczynski raised their price target by 2.2% from $135 to $138 and also maintained a Strong Buy rating.

Currently, 80% of the top-rated analysts covering Wynn Resorts rate the stock as a Strong Buy or Buy, while 20% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

Since the release of Wynn Resorts' latest quarterly report on May 7, 2024, the stock price has declined by 1.5%. Looking at the year-over-year performance, the stock is down 15.1%. During the same period, Wynn Resorts has lagged behind the broader market, with the S&P 500 experiencing a decline of 25.4%.

It is worth noting that Daniel Politzer, the Wells Fargo analyst who raised the price target on Wynn Resorts, is ranked in the top 19% of Wall Street analysts by WallStreetZen. With an average return of 4.3% and a win rate of 52.5%, Politzer specializes in the Industrials and Consumer Cyclical sectors.

Wynn Resorts, Limited is a company that designs, develops, and operates integrated resorts. Its various segments include Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. These segments encompass luxurious hotel towers, casino spaces, gaming salons, retail spaces, meeting and convention spaces, and a variety of food and beverage outlets. Wynn Resorts aims to provide exceptional experiences and extend its leadership position in each of its markets.

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