Wynn Shares Drop on Lack of Special Dividend Announcement
Wynn Resorts Ltd. (WYNN), operator of the Wynn and Encore casinos, fell 5.3 percent after disappointing investors who expected a special dividend and reporting profit that missed analysts’ estimates.
The company’s failure to declare a special payout “likely” caused the drop, Joseph Greff, a JPMorgan Chase & Co. analyst, said yesterday in a note. Wynn, based in Las Vegas, has paid a special dividend in four of the last five years.
Wynn closed at $123.37 in New York. The shares were up 25 percent this year before today.
Chief Executive Officer Stephen Wynn said on a conference call yesterday the board is also weighing the company’s investment opportunities in Macau.
“Special dividends are in fact special and there’s no certainty about what the board will decide to do about that going forward,” said Wynn, who is also the company’s founder and chairman. Shareholders can still “count on” the 50-cent a share quarterly dividend, he said.
Third-quarter profit excluding some items was $1.05 a share, missing the $1.19 average of 24 analysts’ estimates compiled by Bloomberg. The company said an 8.3 percent decline in net-casino revenue was driven by the annual difference in baccarat winnings.
The issue of a special dividend remains a possibility early next year after Wynn secures final government approval and financing for the Cotai property, Greff said.
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