Wynn Resorts, the renowned high-end hotel and casino resort operator, exceeded analysts’ expectations with its fourth-quarter performance, leading to a 2.7% rise in its stock during after-hours trading on Wednesday.
Solid Financial Results
Wynn reported fourth-quarter earnings of $729.2 million, equivalent to $6.19 per share, compared to 29 cents per share for the same period in 2022. This surpassed the estimated earnings of $1.15 per share projected by FactSet-analyzed analysts.
The company also achieved better-than-anticipated revenue for the quarter, reaching $1.84 billion as opposed to the expected $1.74 billion. This notable increase in revenue was mainly due to a significant $835.5 million rise in operating revenue, resulting in a quarterly total of $1.84 billion.
Strong Growth from Macau and Las Vegas Operations
Net income attributable to Wynn Resorts rose to $729.2 million compared to $32.4 million in the year-ago period. The increase can be primarily attributed to higher operating revenue from both its Macau and Las Vegas operations.
A Leading Employer
Employing around 27,000 individuals, Wynn Resorts is one of the largest employers on the esteemed Las Vegas Strip. The other two major employers in the area are MGM Resorts International and Caesars Entertainment.
Stock Performance
While Wynn’s shares closed slightly lower at $99.83 during regular trading, it is important to note that the stock has experienced a growth of 9.6% year-to-date. Despite this positive trend, shares have slightly declined by 3.7% in the past 12 months.
Wynn Announces Strong Q4 Results and Continued Momentum in 2023
Wynn Resorts has reported exceptional financial performance in the fourth quarter of 2023, achieving a record-setting adjusted property EBIDTAR of $630.4 million. This figure is significantly higher than the $195.1 million recorded during the same period last year. CEO Craig Billings attributes this success to the company’s unwavering commitment to delivering a five-star hospitality experience that sets their properties apart from competitors, making them the preferred choice for luxury guests in Las Vegas, Boston, and Macau.
Furthermore, Billings revealed that construction of Wynn Resorts’ highly anticipated Wynn Al Marjan Island resort in the United Arab Emirates is progressing well. The company expects this resort to become a must-visit tourism destination in the region.
In a separate development, the Culinary Workers and Bartenders Union recently announced a groundbreaking agreement with Wynn Resorts, MGM Resorts, and Caesars Entertainment. This deal, which covers 40,000 hospitality workers, includes substantial wage increases of 10% in the first year and a total of 32% over the five-year duration of the contract. Additionally, employees will enjoy various other benefits as part of this historic agreement.
Wynn Resorts’ impressive performance in Q4 and its ongoing commitment to providing unparalleled experiences demonstrate their dedication to excellence in the hospitality industry.