Although its press release remained bullish on the release of the company’s third quarter 2020 results yesterday after the market closed, the casino and resort operator Wynn Resorts (NASDAQ: WYNN) sharply below the expectations of Wall Street analysts. Zacks Equity Research reports a negative surprise of 112% in earnings, with analyst consensus expecting a loss per share of $ 3.32 and actual losses of $ 7.04 per share. Zacks also notes that Wynn missed the earnings per share (EPS) consensus for four consecutive quarters.
Revenue was also below the mark, delivering negative surprise about 19.5% below expectations, reaching $ 370.5 million, a 77.5% drop year-on-year. other from $ 1.65 billion in third-quarter 2019 revenue. Wynn notes that its third-quarter net losses include $ 407.4 million in income taxes “related to an increase in the allowance for less- value on deferred tax assets that should no longer be realized ”.
Despite the hiccups, the company says a recovery is underway. In the third trimester follow-up conference call, CEO Matt Maddox highlighted the positive developments after the end of September 30, noting that in October, the company “has grown from 10% of our normal visitor volumes to almost 30%”, while at in early November, around 6,000 people visited Wynn’s Properties Macau daily (up from 18,000 before COVID-19).
While China’s National Golden Week Day Gave Wynn’s Much-Needed Fortune, the company’s shares remain well below pre-pandemic levels. Wynn owns a sports betting service, WynnBET, which recently partnered with NASCAR, but the company’s entry into digital sports betting, the explosively growing market of 2020, appears slower than that of rivals.
Unless WynnBET catches up with competing offers such as Caesars Entertainment‘s potentially very lucrative acquisition of William Hill, Wynn’s relatively limited presence in online sports betting could prove to be a handicap for the future.
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