Wynn Resorts 2Q results disappoint on Macau falloff; shares crash in after-hours trade

Wynn Resorts Ltd (NASDAQ:WYNN) on Wednesday reported disappointing second-quarter results which missed Wall Street expectations as operations in the Chinese gaming enclave of Macau fell amid the anti-corruption drive Beijing.

Shares of Wynn finished on Wednesday down 4.1% to US$159.99 and further tumbled in after-hours trade, dropping by 8.6% to US$146. Wynn’s shares have fallen 5% since the start of the year.

Adjusted net income attributable to Wynn Resorts was US$166.2 million, or US$1.53 per diluted share, for the second quarter of 2018, against a consensus estimate of US$2.03. Operating revenues were US$1.61 billion, short of expectations of US$1.69 billion, the company said. 

Operating revenues from Wynn Macau were US$543.3 million for the second quarter of 2018, a 14.9% decrease from US$638.5 million for the same period of 2017. Adjusted Property EBITDA from Wynn Macau was $172.9 million for the second quarter of 2018, a 17.8% decrease from $210.4 million for the same period of 2017.

READ: Wynn Resorts could soon be in a no-Wynn situation

Wynn Resorts Ltd is a company based in Las Vegas, Nevada, and is a developer and operator of high-end hotels and casinos. It was founded in 2002 by former Mirage Resorts Chairman and CEO Steve Wynn, and is now run by chief executive Matthew Maddox. As of 2018, the company has developed five properties and was building a sixth.

Former chief executive Wynn is a major contributor to US President Donald Trump. He donated US$2.4mln to Republican causes over the past five years, ABC News reported. He recently stepped down amid sexual misconduct claims.

Story by ProactiveInvestors