Friday, October 26, 2012

Wynn Resorts Limited (NASDAQ:WYNN) Q3 profit falls 12 pct, Shares Soar – LVS, MPEL, MGM

Casino operator Wynn Resorts, Limited (NASDAQ:WYNN) reported a 12 percent fall in net profit for the third quarter, as losses from debts raised its expenses.

Despite the fall in profit, the earnings re above what analysts had forecast and its shares rose 4 percent in after-hours trading on Wednesday, after having fallen about $2 in normal trading hours.

Excluding one-time items, including $19.7 million in deferred financing costs and fees for amending credit agreements, Wynn's earnings amounted to $1.48 per share. Analysts polled had expected $1.32 per share.

Revenue was flat at $1.3 billion, in line with Wall Street expectations.

Its Las Vegas operations reported a 12 percent growth in revenues to $388 million, boosted largely by a near 23 percent rise in casino revenue.

Room revenue rose 1.4 percent to $91 million, with the average daily rate growing nearly 2 percent to $244 million.

In general the company's operations in Las Vegas were much better both in terms of table games and slot machines. However in Macau in Asia, business was much slower.

Occupancy at Wynn and Encore Las Vegas fell to 85.7 percent from 88 percent a year earlier. While revenue per available room, or revpar, declined 1.2 percent to $209.

At Wynn Macau, revenue fell 4.3 percent to $910.5 million during the quarter, as receipts from the casino's table games and slot machines slowed from a year ago. The company also had fewer slot machines, on average, than a year earlier.

Shares of WYNN ended higher by 7.25% to $120.43 in Thursday’s session. Las Vegas Sands Corp.(NYSE:LVS) climbed 4.43%, Melco Crown Entertainment Ltd (ADR)(NASDAQ:MPEL) surged about 6% and MGM Resorts International(NYSE:MGM) climbed 2.26%.

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