Wynn Resorts’ Strong Performance Not Strong Enough for Investors

The gaming giant's first-quarter earnings were strong but the top line Wynn Resorts stock is slumping Friday after the casino operator reported first-quarter earnings, as a bottom-line beat wasn't enough to offset disappointing revenue There's no winning without losing in casinos, and for Wynn (ticker. Welcome to the Wynn Resorts First Quarter Earnings Call. and in North America, in Macau particular it's investing in our people, which we're doing, Our already strong domestic liquidity position was recently bolstered by the we have sufficient liquidity runway in a worst-case no-revenue full-pay.

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Wynn Resorts Ltd (WYNN) Q1 Earnings Call Transcript | The Motley Fool - Wynn Resorts’ Strong Performance Not Strong Enough for Investors

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Can Casino Stocks Survive the Pandemic? Strong performances for Wynn Resorts in Macau and Las Vegas boosted the firm's Q2 revenues beyond analysts' expectations, but profits fell. We got a covenant waiver on our U. It's a long time between now and April It opened Wynn Palace last year, its second resort in the Macau region.

Why Wynn Resorts Is the Hottest Casino Stock


Related News Articles. My understanding is that teachers are getting tested when they're going in and so I think it's a little bit of a different situation there. So we're really focused on casino and on leisure and trying to capture a disproportionate amount of that market of people coming to Las Vegas. Company News Guide to Company Earnings. And Ian I think just to clarify the May holiday traffic that we witnessed was in Mainland China, not necessarily in Macau, but Chimelong which is right in Hengqin Island had really strong volumes and as well as lots of resorts around. We do anticipate as we get closer to an opening, weeks from now that there will be pent-up demand in the leisure segment. Image source: Wynn Resorts. Text size. As an example, I believe we were one of the first companies in the nation, not just in our industry, but in the nation to produce a detailed reopening plan. Dec 12, at PM. There is clearly pent-up demand for activity. On the capital structure side, I would just reiterate liquidity, liquidity, liquidity, liquidity is king. The covenant in Macau is at the concessionary level on a senior secured basis. Join Stock Advisor. Harrah's Entertainment has gained We also knew during that time that asking our 30, employees, team members, 15, of them in North America and 15, in Macau that a pandemic is upon us, that we're closing our resorts. We've seen that in a lot of surveys that have happened out there and so we're working through that. Top Stocks. Those benchmarks have been widely distributed, they are going to be quite public and it's really a great way that our medical community is looking at this to think about phased openings of the economy. Editor's Choice. Proprietary Rights. There is pent-up demand in China. Even the Indian Nations are getting hit hard, offering no alternative to big an annual event, at least until enough folks have developed immunity. Chart showing the share price performance of Wynn Resorts, Limited Rich & Powerful Short selling occurs when an investor borrows a security, sells it on.


Wynn Resorts’ Strong Performance Not Strong Enough for Investors - Steve Wynn's pipe dream - Oct. 23,


So just how are you thinking about that? What we've seen over the May holiday is a lot of resorts and luxury driven travel, a lot of family driven travel, which is very good for Cotai. So what's odd about a casino company looking to go public? Ian, do you have any thoughts on that? But in the last few years there have been few opportunities for growth. Thank you for taking my question. Given the tailwinds Wynn Resorts is seeing in the casino industry, the stock's strong run might not be over. Once it opens. Would you be willing and are you anticipating lending more to junkets and directly to VIP players? For the best Barrons. So I think that's a big deal, but Matt, just overall, if you could comment just you mentioned in your prepared remarks, you're talking to a number of CEOs and partners out there, I was curious specifically on if any of those conversations have moved into specifically airline partners as it relates to lift into Las Vegas because that's pretty important particularly as you get into the higher price points and it's obviously going to need to be something that works together with the broader industry out there. Then, at the prompt, dial MDYS Your Ad Choices. The shutdown could signal bankruptcy for major players if it extends beyond early May, with lodging, gaming, food, entertainment, and liquor sales all drying up. We got a covenant waiver on our U. We're focused on it. We were pleased to be the first company in our industry to issue unsecured notes since the onset of the pandemic, once again highlighting the strength of our brands and our business.


Can Casino Stocks Survive the Pandemic?


It's also possible that new outbreaks linger for months or the disease becomes an annual event, at least until enough folks have developed immunity. I am also very happy that we're in the business of the premium and high-end, which requires less people and more revenue. Good afternoon, everyone. I think it's been almost 28 days without a case. Copyright Policy. Harrah's Entertainment has gained Investors turn wary. So we would have access to the bond market at WML and in the U. We do anticipate as we get closer to an opening, weeks from now that there will be pent-up demand in the leisure segment. Regional Sites:. So just how are you thinking about managing it? Even the Indian Nations are getting hit hard, offering no alternative to big city or riverboat gambling. I'll start off with this. We were pleased to be the first company in our industry to issue unsecured notes since the onset of the pandemic, once again highlighting the strength of our brands and our business. This is a change from the to period, when VIP play plunged and mass market play was less impacted. In addition, there are no guarantees that customers will return after everything reopens, due to lingering fears about air travel and large gatherings. We need to actually get back to generating cash flow first, but certainly maintenance of liquidity was and is a really important part of capital structure management in times like this. No, I think that's really the essence of what we're going to do. Image source: The Motley Fool. We saw Chimelong Resort just a stone's throw from Macau absolutely packed over the May holiday. So I think from a health and safety perspective, we've done I believe just about everything that we can possibly think of and if there are other good ideas we will implement them, but what we're going to do is think about it incrementally, watch it and then we have to watch the data from all the communities around us and what's going on. Stock Market. Nevertheless, investing in Wynn at this early stage in the company's development takes a big leap of faith. That process involved introducing relative mass testing for the individuals and that was very successfully done. Yes, that's a great question, Shaun and we -- I have personally spoken to the airlines that have lots of lift capacity in particular into Las Vegas and in the month of May and in June, there is a dramatic reduction in lift capacity as you can imagine. She says that the overall IPO market remains sluggish and that it will take more than two weeks of strong market performance to entice investors to buy any new offerings, let alone one this risky.


Why Wynn Resorts Is the Hottest Casino Stock | The Motley Fool


LVS have been hit especially hard, with their Macao operations shutting down well before Las Vegas closed its doors a few weeks ago. Then, at the prompt, dial MDYS What thoughts or concerns or views do you have about the prospect of opening up in kind of a choppy fashion or any kind of a resurgence that could delay the ramp up, not that you would predict it one way or the other, but perhaps provide contingencies beyond just the financial ones for it. All Rights Reserved. Privacy Policy. Find the highest nationally available rates for each CD term here from federally insured banks and credit unions. Join Stock Advisor. First, as a follow-up to Thomas' question on consolidation. News Company News. Yeah, I'm not sure about that. Given the tailwinds Wynn Resorts is seeing in the casino industry, the stock's strong run might not be over. So we would have access to the bond market at WML and in the U. Analysts were split on the results, even the bulls. The stock was supposed to start trading on Wednesday but the offering was pushed back. I think that needs to be said that's a really big statement to your local communities. They are deep in dialog about that, the system has been setup and now they're trialing it and they've already altered the border, opening closure hours back to where they were previously. No, I think that's really the essence of what we're going to do. Thank you, operator and good afternoon everyone. Submit a Complaint. We hope everybody stays safe and healthy and we'll talk to you next quarter. But there's a good reason that these stocks have been winning bets this year. Wynn Resorts' growth is about more than Macau's recovery in Track your performance is seeing in the casino industry, the stock's strong run might not be over. Here's what investors should know about the last two years and what to Las Vegas' casino revenue isn't growing enough to justify new. In third-quarter , a weak Las Vegas show led earnings to miss the A dismal Las Vegas performance has been weighing on the company's performance lately. Wynn Resorts' heavy reliance on debt financing is a concern. will provide enough data or color on the earnings call for investors to get a.


So there are some behind the scenes work that needs to happen, but the airlines are definitely focused on it and they are contracting the list now, but based on my conversations it's been fairly short-term because trying to predict what demand will be 60 days or 90 days from now is almost impossible given it's the speed of the information in the economy that we're learning every day. I think each day people's mentality changes depending on where they live and what they're experiencing and if you look at what's happening in Texas right now with the various food and beverage outlets, if you look at what's happening on the beaches in southern California, we're going to have a very safe environment, but we will have an environment that I think a lot of people will want to come participate in. So we're really focused on maintaining our liquidity right now. So we're continuing to be optimistic about what's going to happen in Macau as the cautious reopening of the border continues. Yeah, I'm not sure about that. Without the hope of a profit until then, investors buying the stock now might wind up having nightmares of their own. No, I think that's really the essence of what we're going to do. Hi, everyone. Trade tensions have of course taken a toll, but if the tariff situation can finally be resolved, some speculate that could be a boon for Macau , and operators like Wynn that are invested there. We've seen that in a lot of surveys that have happened out there and so we're working through that. We published it for the world to see on April 19th. Thanks for all the detailed comments. In Massachusetts, they have formed a task force at the state level and I want to commend both Governor Sisolak and Governor Baker for early fast action and for their tireless work on this effort. So we went through our long list of capital projects in Massachusetts and Las Vegas and in Macau and we've effectively put all of the short-term things on hold outside of something that's under construction now, for example, Delilah in Las Vegas that was halfway through construction, we're going to finish that, but the large projects, room remodels, some of the other things that we were looking at, we have put on hold until we're cash flow positive. All participants are on listen-only until the question-and-answer session of today's call. All rights reserved. The offers that appear in this table are from partnerships from which Investopedia receives compensation.


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