Prosecutors from the Manhattan and Las Vegas U.S. Attorney's offices and investigators from the IRS and Drug Enforcement Administration are coordinating their efforts to look into the Las Vegas-based company, sources said, the Journal reports.
The criminal probe comes as U.S. authorities step up their scrutiny of casinos' efforts to prevent money laundering. Regulators have long been concerned about vulnerabilities at casinos, which are complex financial institutions that conduct a large amount of cross-border and cash transactions. Wynn, which is run by casino entrepreneur Steve Wynn, is the third major Las Vegas casino company in recent years known to be investigated for possible violations of money-laundering laws, according to the Journal.
The company hasn't been accused of wrongdoing.
Shares of Wynn Resorts are up 2.28% to $181.90 in pre-market trade.
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 a few notable 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 growth in earnings per share, good cash flow from operations, expanding profit margins, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WYNN RESORTS LTD has improved earnings per share by 5.0% 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 ($8.24 versus $7.17).
- Net operating cash flow has slightly increased to $396.04 million or 6.88% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -27.89%.
- 40.25% is the gross profit margin for WYNN RESORTS LTD which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 13.97% trails the industry average.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 5.2% when compared to the same quarter one year prior, going from $182.02 million to $191.41 million.
- You can view the full analysis from the report here: WYNN Ratings Report