Wynn Resorts, Limited (NASDAQ:WYNN) is gearing up to reveal its financial performance for the fourth quarter of 2023 on February 7, 2024, following the market’s closing. The company pleasantly surprised investors in the previous quarter with an earnings beat of 25.3%.
Estimates Overview
As the reporting date approaches, the Zacks Consensus Estimate for fourth-quarter earnings per share has risen from $1.07 to $1.12 in the last seven days. Comparatively, WYNN reported a loss per share of $1.23 in the same quarter of the previous year. The consensus revenue estimate for the upcoming quarter stands at approximately $1,707 million, indicating a notable 69.8% improvement from the corresponding figure in the previous year.
Key Anticipated Factors
Several factors are expected to influence Wynn Resorts’ performance in the upcoming report. The company is likely to benefit from the expansion of sports betting, strategies to boost non-gaming revenue, and a strong showing in Macau. The fourth quarter is projected to see positive contributions from mass casino drop, direct VIP turnover, luxury retail sales, and hotel revenues.
Macau and Encore Boston Harbor
The easing of restrictions in the Macau region is anticipated to drive increased visitation and demand, providing support to Wynn Resorts’ overall performance. According to our projections, revenues from Macau operations are expected to surge by 348.3% year over year to $852.9 million. Meanwhile, revenues from Las Vegas operations are forecasted to experience a modest 0.2% YoY increase, reaching $586.4 million.
Encore Boston Harbor is likely to contribute significantly to the company’s top line in the fourth quarter. Development projects, including additional parking, food and beverage enhancements, and entertainment amenities, coupled with strategic marketing campaigns, are anticipated to facilitate new customer acquisition. Revenues from Encore Boston Harbor are expected to witness a 5.3% YoY growth, totaling $229.8 million in Q4.
Challenges and Expense Increase
Despite the positive outlook, the company might face challenges from a surge in operating expenses, which could impact the bottom line. Our model predicts a substantial 74.2% YoY increase in total operating expenses for the fourth quarter, reaching $1,577.9 million. Investors will keenly observe how Wynn Resorts navigates these challenges while capitalizing on growth opportunities in its upcoming financial report.
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