Wynn Resorts posted beats on its top and bottom lines in the fourth quarter. In results released after the closing bell Wednesday, both Macao locations and Las Vegas were strong while Boston Harbor was essentially in line with expectations. The Club stock moved higher in after-hours trading. Operating revenue for the three months ended Dec. 31 increased 83% year-over-year, to $1.84 billion, outpacing expectations of $1.74 billion, according to estimates compiled by LSEG. Adjusted earnings-per-share (EPS) came in at 1.91 per share, outpacing the LSEG consensus estimate of $1.15 and reversing a loss in the year-ago period. Adjusted property EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) — Wynn’s key metric for profitability — surged 223% year-over-year, to a new record of $630 million, well ahead of the $548 million consensus estimate, according to FactSet. WYNN 1Y mountain Wynn Resorts 1 year Bottom line Macao is back on track with a better profit margin profile than ever before after a stumble in the prior quarter, Las Vegas is firing on all cylinders, and Boston Harbor remains resilient. It appears the strength in the fourth quarter has carried over into the current (first) quarter in all three locations. Las Vegas stands to benefit from the Super Bowl and Chinese New Year coming this weekend, the latter of which should certainly give Macao properties a boost as well. While Boston Harbor isn’t showing quite as much growth as the other two locations, the team highlighted buoyant demand in January. They see good progress in getting the needed approvals to expand the operations footprint. Not much update on Wynn Al Marjan in United Arab Emirates (UAE), which broke ground this year, except to say that management continues to view it as a “very substantial opportunity.” The stock is trading around the lower end of the valuation range prior to Covid, at 10 times enterprise value to forward EBITDAR. Shares…
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