Wynn shares (WYNN) were down over 3% in extended trading, after the company reported a profit of $0.42 per share – in line with analyst estimates. They also made $1 billion in revenue while analysts were only expecting a precise $992.29 million. “I think people were expecting a blowout quarter,” Andy Kibbens co-CEO told viewers in a radio show exclusive. “After all, it is a casino. But they must have let a few too many people walk away with the jackpot this quarter. You can’t always expect a 2.87% payout rate. Sometimes it’s worse.” Kibbens said that he had more faith in MGM Resorts International which he expects to have a lower payout ratio and is already highly undervalued relative to its peers.
Kibbens went on to talk about Expedia (EXPE), the online travel company, which reported a profit of $0.40 per share. Analysts were expecting $0.42 per share. Nevertheless, the stock traded 3% higher to $21.70 in extended trading, which is from the time the market closes until 8:00PM where typically machines accept trades usually at a lower volume. “People are travelling more. Profit doesn’t just triple out of nowhere. Come on guys. [People] are booking tickets. … More people are going to Vegas!” He went on to say, “Wynn, MGM, and Expedia are related. You can see casino profits rise as the travel demand picks up. Again why I’m not backing away from the casinos - these money making machines!” Kibbens ended his segment stating that he is also a buyer of Expedia though he likes the casinos better as safer investments with greater upside.
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