Updates from 5:02 p.m. EST with additional information and updated stock price.
Wynn Resorts (WYNN) - Get Report stock rose almost 8% to $103 after-hours following its fourth-quarter earnings release as investors seemed to be more impressed with the performance of its newly opened Wynn Palace property in Macau than they were disappointed by the company's 37-cent earnings miss.
The company reported a 37.3% increase in net revenue of $1.3 billion for the quarter with adjusted earnings of 50 cents a share, well short of the 87 cents a share analysts polled by FactSetwere expecting. Wall Street was expecting the company to report revenue of $1.257 billion.
Wynn's Wynn Palace reported net revenue of $418.7 million, including $373.2 million from gaming revenue.
Concerns of the new property taking customers away from Wynn's more established 10-year-old property, Wynn Macau, were partially realized, with Wynn Macau reporting a 10.3% dip in fourth-quarter revenue to $498.4 million from $555.7 million. The dip was driven mainly by a 10.7% decrease in casino revenue.
However, to put that decline in perspective, the company had previously forecast a Macau cannibalization rate between 20% and 25% at an investor day nine months ago.
Wynn relies on its Macau properties for more than 60% of its revenue.
For the full year, revenue increased 9.6% to $4.47 billion from $4.08 billion with adjusted net income decreasing slightly to $3.39 a share vs. $3.44 a share in the previous year.