Wynn Resorts to Post Q1 Earnings: What's in Store for the Stock?

Wynn Resorts, Limited WYNN is scheduled to report first-quarter 2025 results on May 6, after the closing bell.

WYNN’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, and missed on two occasions, the average surprise being 17.4%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Trend in Estimate Revision of WYNN

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.22, indicating a deterioration of 23.3% from $1.59 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $1.73 billion, suggesting a decline of 7.3% from the prior-year quarter’s figure.

Wynn Resorts, Limited Price and EPS Surprise

Wynn Resorts, Limited price-eps-surprise | Wynn Resorts, Limited Quote

Let's look at how things have shaped up in the quarter.

Factors Likely to Shape Wynn Resorts’ Quarterly Results

Wynn Resorts’ first-quarter performance is likely to have benefited from strong domestic demand, solid recovery in Macau and disciplined capital spending. Solid Las Vegas operations, a more balanced visitation pattern during the Chinese New Year and strategic development projects in Macau are likely to have supported the company’s performance in the to-be-reported quarter.

In Las Vegas, Wynn’s performance is likely to have gained from a strong slot handle, elevated table drop and high-margin non-gaming revenues such as food and beverage, entertainment and luxury retail. Continued strength in group bookings and high-quality programming likely supported Average Daily Rates and occupancy levels across its resorts. Our model predicts the segment’s room revenues to rise 9% year over year to $244.3 million in the to-be-reported quarter.

Progress on concession-related capital expenditures, including the development of a new event center, theater and production show at Wynn Palace, is likely to have aided the company’s performance in the first quarter.

However, macroeconomic headwinds such as inflation and labor cost pressures may have weighed on margins in the quarter. Our model predicts first-quarter total operating expenses to rise 3.6% year over year to $1.55 billion.

What Our Model Says About WYNN Stock

Our proven model predicts an earnings beat for Wynn Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.

WYNN’s Earnings ESP: Wynn Resorts has an Earnings ESP of +0.15%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Wynn Resorts’ Zacks Rank: The company has a Zacks Rank #3 at present.

Other Stocks Poised to Beat on Earnings

Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.

Atour Lifestyle Holdings Limited ATAT has an Earnings ESP of +6.45% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Atour Lifestyle is expected to register a 19.2% gain in earnings for the to-be-reported quarter. Its earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, with an average surprise being 5.2%.

Choice Hotels International, Inc. CHH currently has an Earnings ESP of +0.94% and a Zacks Rank of 3.

In the to-be-reported quarter, Choice Hotels’ earnings are expected to increase 7.8%. Choice Hotels’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 7.5%.

Topgolf Callaway Brands Corp. MODG currently has an Earnings ESP of +20.00% and a Zacks Rank of 3.

In the to-be-reported quarter, Topgolf Callaway’s earnings are expected to decrease 144.4%. Topgolf Callaway’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, with an average surprise being 244.7%.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research