Wynn Resorts Ltd. (NASDAQ: WYNN): Q4 Earnings Preview 2010

Wynn Resorts Ltd. (NASDAQ: WYNN) is scheduled to release its fourth-quarter earnings after the closing bell on Thursday, February 10, 2011. Analysts, on average, expect the company to report earnings of 65 cents per share on revenue of $1.13 billion. In the year ago period, the company reported earnings of 8 cents per share on revenue of $809.33 million.

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. It owns and operates two destination casino resorts Wynn Las Vegas, on the Strip in Las Vegas, Nevada, Encore at Wynn Las Vegas located adjacent to Wynn Las Vegas, and Wynn Macau, located in the Macau Special Administrative Region of the People’s Republic of China (Macau).

In the preceding third-quarter, the Las Vegas, Nevada-based company's net loss was $33.5 million, or 27 cents a share, compared to a profit of $34.2 million, or 28 cents a share, in the year-ago quarter. On an adjusted basis, the company earned 39 cents a share in the latest quarter. Revenue jumped to $1 billion from $773.1 million in the same quarter last year. Analysts, on average, expected the company to report earnings of 39 cents per share on revenue of $990.83 million.

The company has benefited from continuing growth in Asia and signs of life in Las Vegas. Meanwhile, more positive data in the US, including improved optimism in the gambling hotbed of Nevada, has sent stocks for casino companies with larger America presences up. Macau's gambling revenue in December surged 66% from a year earlier, capping a year in which the territory's revenue from casino gambling soared 58%, well above forecasts made by analysts and officials earlier in 2010. Gambling revenue in December totaled MOP18.88 billion (US$2.36 billion), up sharply from MOP11.35 billion a year earlier, according to data from Macau's Gaming Inspection and Coordination Bureau.

A strong Chinese economy, burgeoning middle class and increasing population of high net worth individuals is facilitating the rise of Macau's growing gaming industry. Ongoing infrastructure developments in Macau, such as the recently inaugurated rail link between Zhuhai and Guangzhou, are expected to further bolster the region's gaming industry.

Wynn Macau’s contribution to the company’s earnings has increased significantly in the last few years. At present, the Macau region contributes approximately 60% to Wynn's gross revenues. VIP gaming currently represents two-thirds of Macau's gross gaming revenues. Approximately 30% of Wynn's revenues comes from the VIP segment. The company opened Encore Macau in April, doubling its presence in the world’s biggest casino market. Wynn plans to build a major resort on the Cotai strip in Macau. The resort will likely cost $2 -$3 billion and is expected to have 1,300 slot machines, 500 gaming tables and 1,500 hotel rooms. Construction is targeted for completion by 2014-2015. . Wynn is strongly positioned to benefit from its established brand image, as its reputation will help lure high-rollers to its existing casinos as well as its planned resort on the Cotai strip.

Full Disclosure: None.

Wynn Resorts (NASDAQ: WYNN): Q3 Earnings Preview 2010

Wynn Resorts Ltd. (NASDAQ: WYNN) is scheduled to release its third quarter earnings after the closing bell on Tuesday, November 2, 2010. Analysts, on average, expect the company to report earnings of 39 cents per share on revenue of $990.83 million. In the year ago period, the company reported earnings of 33 cents per share on revenue of $773.07 million.

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes 22 food and beverage outlets comprising 6 dining restaurants, 2 nightclubs, 1 spa and salon, 1 Ferrari and Maserati automobile dealership, wedding chapels, an 18-hole golf course, meeting space, and foot retail promenade featuring boutiques.

In the preceding second quarter, the Las Vegas, Nevada-based company's net income was $52.4 million, or 42 cents a share, from $25.5 million, or 21 cents a share, in the year-ago quarter. On an adjusted basis, the company earned 52 per share in the latest quarter. Revenue surged to $1 billion from $723.3. Analysts, on average, expected the company to report earnings of 42 cents per share on revenue of $992.29 million. 

Wynn is also seeing success in Asia with its Wynn Macau operation. Wynn's best news came from Macau, the Chinese gambling enclave, where revenue spiked to $714.4 million from $410.4 million. Wynn Macau's average daily room rate spiked to $287 in the second quarter, up from $263 even as occupancy fell to 81.3% from 86.7% largely due to the addition of hundreds of new rooms and villas. Revenue per available room, a key industry metric known as RevPAR, was $234, up 2.5% above 2009 levels of $228. 

Macau's August gambling revenue rose 40% from a year earlier, slowing from July's 70% because of a higher base effect. August revenue totaled MOP15.8 (US$2.0 billion), nearly flat from July's MOP16.3 billion, but up significantly from MOP11.3 billion a year earlier, according to data from Macau's Gaming Inspection and Coordination Bureau. August's revenue figure is the third highest so far this year after the record MOP17.1 billion hit in May and July's total.

Las Vegas Strip — which accounts for more than half the total — gambling revenue spiked a whopping 21% to $544 million on brisk table volumes and stabilizing slot-machine play.

Revenue collected on Las Vegas' main strip of casinos surged 21% to $544.4 mil in Aug., and revenue for all Nev. casinos climbed 12% to $944.5 mil, signaling a possible rebound from a two-year slump. 

We hope for continued improvement in Las Vegas or -- let me put it different, we hope that we'll get smarter in Las Vegas in dealing with the peculiarities of this market, and this very, very mercurial, national economic market we're living wit

In terms of stock performance, Wynn shares have gained nearly 81 percent since the beginning of the year.

Full Disclosure: None.