Wynn Resorts Shares Jump on Signs Worst May Be Over in Macauby
Adjusted earnings there and in Las Vegas top analysts' views
Early announcement frees executives to purchase the shares
Wynn Resorts Ltd. rose 13 percent in New York after the casino owner reported fourth-quarter preliminary results that beat analysts’ estimates.
In Macau, adjusted earnings before interest, taxes, depreciation and amortization will be $156 million to $164 million, the company led by Steve Wynn said Friday in a statement. The high end exceeded the $162 million average of analysts’ estimates, Deutsche Bank’s Carlo Santarelli said in a note Friday. In Las Vegas, Wynn earned $123 million to $131 million, compared with the $111 million consensus estimate cited by Santarelli.
“We expect the announcement to serve as a positive catalyst in a difficult market today,” Santarelli said.
Wynn rose to $58.37 at the close. The company, like other casino operators in the Chinese enclave of Macau, has been hit hard by a slump in betting, particularly from high rollers. Its shares declined 53 percent last year.
Securities regulations prohibit executives from talking about earnings and buying and selling shares in the so-called quiet period before the results are released. By announcing preliminary earnings, Wynn Resorts freed its executives to resume open-market purchases of the stock, according to Harry Curtis, a Nomura Securities analyst.
The company is expected to announce its full results at the end of the month or early in February, spokesman Michael Weaver said in an e-mail.