Wynn Resorts is back in the news, but this time it is not about Elaine Wynn and her ex-hubby. It is about the ability of the casino to continue growing despite the sour news that has plagued the casino since the beginning of the year. In the beginning of the year, the Wall Street reported that Steve Wynn allegedly assaulted more than one female employee during his control of the resort.
Wynn is filing a defamation lawsuit against the allegations. Investigations into the truth of the matter are still ongoing. But, what is happening to Wynn Resorts in the meantime? DB Securities, a company that makes projections about companies and their earnings, has downgraded Wynn Resorts second-quarter results. The revenue may maintain strength; however, the scandal is making it harder for people to trust in the stock.
Even the Motley Fool is telling people to be cautious of Wynn Resorts stock despite how they have performed in the last three years. The stock price is the lowest it has been in three years. The second-quarter results are about $17 million right now, which is 4 percent lower than what forecasters believed it could reach before the scandal broke.
DB securities feel the second-quarter is going to be level at around $522 million, which is 3 percent below what the Consensus Metrix stated it would be. The Macau property is supposed to be doing better, but will they?
Wynn Macau Numbers
May numbers for Macau are down for Wynn Resorts. The June numbers are expected to return to a better growth. However, VIP numbers will be soft as they have been for several years. Junkets are struggling to get whales to the island, but that doesn’t mean they are lacking in money.
Junkets are arranging trips for customers to get to Russia for the 2018 FIFA World Cup. Junket operators will see an increase because of the World Cup, which will help the Macau numbers overall, but it may not do anything for Wynn Macau.
Macau is predicted to have gains, with a higher gross gaming revenue for the higher end of the market. They also feel the premium mass segments will be earning decent returns for the companies.
DB Securities does not believe Wynn Resorts needs to roll up the sidewalk and sell out, especially with Boston Harbor opening soon. They just need to weather the scandal storm and get beyond the name issue.
