Wynn Resorts’ Quarterly Performance Disappoints
Las Vegas Slump Hits Casino Business
Wynn Resorts’ latest quarterly results fell short of Wall Street’s expectations, primarily due to a slowdown in its Las Vegas casino operations. The company’s shares took a 2.8% hit in extended trading on Monday as a result.
Revenue Decline Offset by Non-Casino Sales
Revenue from Wynn’s Las Vegas operations declined by 1.9% to $607.17 million, largely attributed to a 13.6% year-over-year dip in casino revenue. However, this decline was partially offset by a 20% increase in entertainment, retail, and other sales.
Industry-Wide Trend
Wynn Resorts is not alone in its struggles. Last week, rival MGM Resorts also reported weak sales from its Vegas casinos, citing a loss of “high-end bulk business” in the third quarter. According to MGM, the timing of these large customer trips is unpredictable and did not fall within the expected quarter.
Quarterly Results: A Miss
Wynn Resorts’ total revenue for the third quarter came in at $1.69 billion, below analysts’ average estimate of $1.73 billion. The company reported a lower-than-expected quarterly adjusted profit per share of 90 cents, missing Wall Street’s projected earnings of $1.10.
Looking Ahead
As the casino industry continues to navigate these challenges, investors will be watching closely to see how Wynn Resorts and its competitors adapt and recover in the coming quarters.
Leave a Reply