Wynn Tops Estimates on Macau Strength

Wynn Resorts beats estimates on both top and bottom line.
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Wynn Resorts

(WYNN) - Get Report

significantly topped second-quarter estimates, buoyed by its Macau division.

But despite the better-than-expected results, shares of the company are falling 3.5% to $85.96 in after-hours activity.

The casino operator earned $52. 4 million, or 52 cents a share on revenue of $1.03 billion, higher than forecasts of 42 cents on revenue of $992.3 million. This compares with a profit of $25.5 million, or 21 cents, on revenue of $723.3 million, in the year-ago period.

The biggest boost, of course, came from Macau, where revenue surged 74% to $714.4 million from $410.4 million last year.

"Our checks relay that Wynn's Macau market share has increased to at least 16% on average since early May from its historical 13% to 14% range," Sterne Agee analyst David Bain wrote in a note last week.

Wynn is also looking to open another property on the Cotai strip, which will most likely be positioned to capture mass market gamblers.

Wynn also said that its board approved a 25-cent dividend for the quarter, payable on Aug. 26 to stockholders of record on Aug. 12.

Wynn previously reported disappointing results for its Las Vegas properties, citing higher costs, including employee health care and benefits, and marketing expenses. Its operating loss for its Wynn Las Vegas and Encore widened to $17.2 million from $8.3 million last year. Revenue rose 1.7% to $318 million.

Occupancy at the Wynn Las Vegas jumped to 92.6% from 86.6% a year earlier, but revenue per available room fell 3.2%.

Still, the company said even trends on the Las Vegas Strip are improving.

-- Reported by Jeanine Poggi in New York.

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