Updated from Aug. 6
Wynn Resorts (WYNN - Get Report) shares vaulted 13% Tuesday after the casino operator blew away analysts' second-quarter earnings estimates amid strong results at both its Las Vegas and Macau casinos.
The report also buoyed other casino owners, particularly those operating in Macau, as it soothed worries that visa restrictions in the Chinese region were hurting traffic.
Wynn said late Monday that it swung to a second-quarter profit of $89.6 million, or 82 cents a share, from a year-earlier loss of $20.1 million, or 20 cents per share a year earlier.On an adjusted basis, the earnings were 92 cents a share, compared with the 53-cent average estimate from analysts surveyed by Thomson Financial. Wynn's net revenue more than doubled to $687.5 million from $273.4 million last year. That topped the $603.7 million that Wall Street expected. "Bonds Hits 755, A-Rod Hits 500, Wynn Hits It Out of the Park," read the headline on a research report from Jefferies & Co. analyst Larry Klatzkin. Numerous sell-side analysts increased their 2007 and 2008 earnings estimates for Wynn after the report. The company's two casinos -- the Wynn Las Vegas and Wynn Macau -- each reported impressive results. The Las Vegas property saw property cash flow grow 58%, with improved margins. Net revenue rose to $159.4 million from $113.5 million last year.