Wynn Resorts Profit Surges

(RTTNews) - Wynn Resorts Ltd. (WYNN) on Thursday reported a better-than-expected surge in fourth-quarter profit on stellar growth at its Macau operations. Following the announcement, Wynn shares - which gained about 4 percent at the close - rallied 5 percent in after-hours trade on the Nasdaq.

During the quarter, revenue at Wynn's Macau operations spiked 24.6 percent year-over-year to $1.12 billion. Average daily rates at Macau operations grew marginally to $315, and occupancy edged up to 96.7 percent from 96.5 percent, Wynn said.

Casino and resort operators like Wynn have immensely benefited from their operations in Macau, the only place in China where gambling is legal. Customers throng the casinos for table games and slotting machines, while also spending on food and accommodation. Like Wynn, rival Las Vegas Sands, has also profitably expanded its operations in Macau.

Meanwhile, Wynn's revenue at Las Vegas climbed 2.4 percent from the year-ago quarter to $400 million.

Las Vegas-based Wynn reported fourth-quarter net income of $214 million or $2.10 per share, compared with $111 million or $1.10 per share last year.

Excluding items, adjusted earnings for the quarter were $231 million or $2.27 per share, compared with $118 million or $1.17 per share in the prior year.

On average, 22 analysts polled by Thomson Reuters expected the company to report a profit of $1.74 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the fourth quarter climbed to $1.52 billion from $1.29 billion a year ago. Nineteen analysts had a consensus revenue estimate of $1.44 billion for the quarter.

Results were also helped by operating margin that expanded to 24.2 percent from 20 percent last year.

Wynn is currently constructing Wynn Palace, an integrated resort in Cotai, Macau, that has a total project budget of $4 billion. The resort is expected to open in the first half of 2016.

Wynn also declared a quarterly cash dividend of $1.25 per share, payable on February 27 to stockholders of record on February 13.

On Tuesday, Las Vegas Sands (LVS) posted a 33 percent jump in fourth-quarter profit, on growth in Macau and Las Vegas operations.

Wynn stock closed Thursday at $201.51, up $7.64 or 3.94%, on a volume of 2.2 million shares. In after hours, the stock gained $9.65 or 4.79% at $211.16. In the past year, the stock has traded in the range of $113.39 - $216.9.