Why Wynn Resorts (WYNN) Stock Is Higher In After-Market Trade

NEW YORK (TheStreet) -- Shares of Wynn Resorts Ltd.  (WYNN) are up 1.61% to $210. after the casino resorts company reported 2014 first quarter earnings.

Net revenues of $1,513.6 million, compared to $1,378.7 million in the first quarter of 2013.

Growth was driven by a 14.2% revenue increase from Macau operations, modestly offset by a 1.5% decline in net revenues from the Las Vegas operations.

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Adjusted property EBITDA was $494.6 million for the quarter, a 9.7% increase from $451.1 million in the first quarter of 2013.

On a U.S. GAAP basis, net income attributable to Wynn Resorts was $226.9 million, or $2.22 per diluted share, compared to net income attributable to Wynn Resorts of $203.0 million, or $2.00 per diluted share, in the first quarter of 2013.

Adjusted net income attributable to Wynn Resorts was $236.7 million, or $2.32 per diluted share (adjusted EPS), compared to an adjusted net income attributable to $205.6 million, or $2.03 per diluted share, in the first quarter of 2013.

The company approved a cash dividend for the quarter of $1.25 per common share, payable on May 29, 2014, to stockholders of record on May 15, 2014.

TheStreet Ratings team rates WYNN RESORTS LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate WYNN RESORTS LTD (WYNN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 4.8%. Since the same quarter one year prior, revenues rose by 17.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 90.90% and other important driving factors, this stock has surged by 62.07% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WYNN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • WYNN RESORTS LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WYNN RESORTS LTD increased its bottom line by earning $7.17 versus $4.81 in the prior year. This year, the market expects an improvement in earnings ($8.32 versus $7.17).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 92.0% when compared to the same quarter one year prior, rising from $111.37 million to $213.88 million.
  • Net operating cash flow has significantly increased by 101.19% to $395.31 million when compared to the same quarter last year. In addition, WYNN RESORTS LTD has also vastly surpassed the industry average cash flow growth rate of -78.76%.
  • You can view the full analysis from the report here: WYNN Ratings Report
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