Wynn Resorts Ltd. Earnings: Here’s Why the Stock is Down

Wynn Resorts Ltd. (NASDAQ:WYNN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down.

Wynn Resorts Ltd. Earnings Cheat Sheet

Results: Net income decreased -41.51% to $111.4 million ($1.17 per diluted share) in the quarter versus a net gain of $190.47 million in the year-earlier quarter.

Revenue: Decreased 4.01% to $1.29 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wynn Resorts Ltd. reported adjusted net income of $1.17 per share. By that measure, the company missed the mean analyst estimate of $1.25. It beat the average revenue estimate of $1.27 billion.

Quoting Management: Our total cash and investments at December 31, 2012 were $2.0 billion. Total debt outstanding at the end of the year was $5.8 billion, including $3.1 billion of Wynn Las Vegas debt, $749 million of Wynn Macau debt and $1.9 billion at the parent company.

Key Stats:

Revenue decreased 0.65% from $1.3 billion in the previous quarter. Net income decreased 0.57% from $112.04 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.58 to a profit $1.55. For the current year, the average estimate has moved down from a profit of $5.46 to a profit of $5.44 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)