The second-quarter financial report was published on Tuesday to a resounding surprise for Wynn Resorts Ltd. Wall Street had written off the casino’s branches in Macau and Las Vegas, predicting losses in these quarterly results. In a turn of events, both casinos have shown resilience and performed well during the period. The Las Vegas-based casino firm recorded a net income of $94.6 million. The turnover of the Macau-based company also went higher than previously anticipated, with
Wall Street Second-Quarter Earnings Predictions
For every quarter of the year, Wall Street analysts forecast the potential estimates of companies based on generally accepted accounting principles (GAAP). These reflect how the company has been performing and expected turnover in a particular period. There are certain metrics that the auditors use to measure the total revenue of a firm such as the earnings before interest, tax, depreciation and amortization. Needless to say, Wall Street relatively gets this stat right most of the time. It, therefore, becomes newsworthy when a company defies the odds and performs better than expected. Wynn Palace and Wynn Macau were estimated to earn $1.26.
Wynn Resorts Q2 Revenue Improves
The report considers the data collected for the June quarter. In that time, Wynn Macau went up 1.7 percent from the first quarter and Wynn Palace moved up by 0.7 percent. The estimations proved to fall short of the eventual numbers due to the overall downturn in the number of gamblers in Las Vegas. While other competitors had experienced fewer numbers during the period, Wynn and Encore Boston Harbor pulled in a whopping $119.8 million. This report elevated Wynn Resorts’ share price to go up by nearly three percent. It would later drop and at the time of publishing remained at 1.7 percent.