Wynn Resorts (NASDAQ:WYNN) Beats Q1 Sales Targets By Stock Story

Luxury hotels and casino operator Wynn Resorts (NASDAQ:)
reported Q1 CY2024 results topping analysts’ expectations, with revenue up 30.9% year on year to $1.86 billion. It made a non-GAAP profit of $1.59 per share, improving from its profit of $0.29 per share in the same quarter last year.

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Wynn Resorts (WYNN) Q1 CY2024 Highlights:

• Revenue: $1.86 billion vs analyst estimates of $1.80 billion (3.5% beat)
• EPS (non-GAAP): $1.59 vs analyst estimates of $1.39 (14.6% beat)
• Gross Margin (GAAP): 44.5%, down from 64.3% in the same quarter last year
• Market Capitalization: $10.97 billion

Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ:WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.

Casino OperatorCasino operators enjoy limited competition because gambling is a highly regulated industry. These companies can also enjoy healthy margins and profits. Have you ever heard the phrase ‘the house always wins’? Regulation cuts both ways, however, and casinos may face stroke-of-the-pen risk that suddenly limits what they can or can’t do and where they can do it. Furthermore, digitization is changing the game, pun intended. Whether it’s online poker or sports betting on your smartphone, innovation is forcing these players to adapt to changing consumer preferences, such as being able to wager anywhere on demand.

Sales GrowthA company’s long-term performance can give signals about its business quality. Any business can put up a good quarter or two, but many enduring ones muster years of growth. Wynn Resorts’s revenue was flat over the last five years. Within consumer discretionary, a long-term historical view may miss a company riding a successful new product or emerging trend. That’s why we also follow short-term performance. Wynn Resorts’s annualized revenue growth of 32.2% over the last two years is above its five-year trend, suggesting some bright spots.

We can better understand the company’s revenue dynamics by analyzing its three most important segments: Casino, Hotel, and Dining and Entertainment, which are 60.2%, 17.6%, and 14.3% of revenue. Over the last two years, Wynn Resorts’s revenues in all three segments increased.Casino revenue (Poker, slots) averaged year-on-year…