Tomahawk, WI 7/31/2013 (Basicsmedia) – Financial results of any company often give investors a clear understanding regarding how it is performing and what the future trend will be like. Wynn Resorts, Limited (NASDAQ:WYNN) recently released its financial results for Q2 of this financial year and there has been a lot of concern being raised by stakeholders all over the place. It is important to look at the finest details when examining the financial results to give you a much clearer and better understanding as to whether this is an investment you can be proud of having made or not. This article provides a few answers to these questions thus equipping the investors to make better decisions.

WYNN, which is also known as Wynn Resorts Ltd, recently stated that it had made losses in its Macau operations. These losses were partially responsible for the fact that Q2 financial results appear to have missed out on what analysts had forecasted for WYNN as a company. The overall revenue WYNN got during this period was $1.33b, from which the earnings were $1.51 for every share held. Analysts’ projections had indicated that out of revenue of $1.34b, investors would enjoy earnings of $1.57 for every share held. The difference may appear smaller but it is huge in financial terms.

What Led to Poor Performance in Macau?

WYNN had decided to undertake a few renovations in its hotel set up in Macau. Remember that the company had been enjoying great profits from its operations in Macau, but this seems to have been affected by the renovations. The work going on within the hotel, made very few rooms available for occupancy hence leading to poor performance financially. Its revenues obtained from Las Vegas, on the other hand, enjoyed growth and there was visible improvement compared with what happened last year.

The company’s CEO has advised investors not to interpret the strong showing in its Las Vegas shop as a sign that the economy was now picking up and the performance would be good going forward. There was growth in revenue of around 17% in the company’s Las Vegas operations, compared against a mere 2.6% enjoyed in Macau. However, the company’s CEO was quick to remind investors that the Las Vegas performance was mostly attributed to the international perception of WYNN as held by its clients.

What this means is that there is likelihood that the Las Vegas performance was because most of the clients unable to use the Macau facilities operated by WYNN, opted top travel to Las Vegas so as not to miss out.

How Was Dividend Affected?

WYNN has announced dividends of around $1 per every share held. This will be paid to every shareholder who is already on record as at August 12, 2013. The dividend will be issued to shareholders from August 26, 2013. Whereas the revenue might have increased by 6.3%, income didn’t match these heights but fell by 6% and settled at more than $129m.

The renovations would need to be done quickly to forestall a situation where WYNN loses out to its competitors thus enabling them to gain more ground. It mostly has to contend with competition from Caesars Entertainment Corporation (CZR), Las Vegas Sands Corp (LVS), and MGM Resorts International (MGM).


This chart shows the general growth of WYNN stock price, although of late the price seems to be dropping. Chart is courtesy of

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.