ynn, which earlier this month raised about us$ 1.8 billion via a Hong Kong listing of shares in its Wynn Macau Ltd unit, reported net income of us$ 34.2 million, compared with us$ 51.2 million a year earlier.
KeyBanc analyst Dennis Forst said the profit was inflated by above-average luck for Wynn at its Las Vegas gaming tables and a tax benefit of us$ 10 million. Adjusted for property charges and other items, the Las Vegas-based company posted a profit of 33 cents per share, which beat the average analyst estimate of 15 cents a share, according to Thomson Reuters I/B/E/S.
"The numbers clearly beat our expectations," said Susquehanna Financial analyst Robert LaFleur. "The results were fairly respectable given the difficult operating environment, but some investors may have expected more." "The beat was encouraging, but EBITDA (earnings before interest, taxes, depreciation and amortization) was pretty much as expected," said Sanford Bernstein analyst Janet Brashear.
Wynn, run by casino mogul Steve Wynn, operates two casino-resorts in Las Vegas and one in Macau, the only place in China where gambling is legal. The company's second Macau resort, Encore Macau, is scheduled to open April 1.
"Macau EBITDA only exceeded expectations by 2 percent," Stifel Nicolaus analyst Steven Wieczynski said in a research note. "Shares are reacting negatively as we believe investors expected more upside out of Macau."
CEO of Wynn, speaking on the conference call, said the company is on track this year "to equal or beat" its 2008 results in both Macau and Las Vegas. The firm will grapple later this year with more competition on the Las Vegas Strip when MGM Mirage opens its multi-tower CityCenter project in December. "We are focusing on the fundamentals," Wynn said. "There is not a lot that we can do to overcome people's curiosity ... I hope that we live up to the challenge."
Wynn's quarterly net revenue inched up to us$ 773.1 million from us$ 769.2 million, aided by higher hotel and food revenue tied to Encore, Wynn's second Las Vegas resort that opened last December. Analysts had expected us$ 743 million.
Goldman Sachs analyst Steven Kent said upside for Wynn's shares could remain limited near-term until investors gain clarity on Macau visa restrictions. Chinese officials have eased restrictions put in place last year, but there have been recent reports of a tightening for some mainland Chinese.
"We don't feel any uncertainty in Macau," Wynn said. He said the company has no immediate plans for its IPO cash, while noting that "Asia seems to be a safer investment" than the United States.