Shares of luxury hotels and casino operator Wynn Resorts (WYNN, Financial) surged by 10.7%, propelled by the company's strong fourth-quarter results. The earnings per share (EPS) and revenue greatly exceeded analysts' projections.
Despite the robust overall performance, Wynn Resorts' casino revenue did not meet expectations due to underperformance in Wynn Macau, which counterbalanced the gains achieved at Wynn Palace and Las Vegas. Furthermore, adjusted property EBITDAR faced a minor decline due to lackluster results in Macau and Encore Boston Harbor, slightly dampening overall profitability.
Financial analysis of Wynn Resorts (WYNN, Financial) indicates a current stock price of $89.08 with a recent price movement showing an 8.61% daily increase. The stock's Price-to-Earnings (PE) ratio is at 21.16, suggesting a valuation close to the industry average for its sector, 'Travel & Leisure.' The GF Value indicates that the stock may be a "Possible Value Trap, Think Twice" with a GF Value estimate of $129.84. For more details on GF Value, visit GF Value.
Wynn Resorts has experienced significant revenue fluctuations, with a 27.2% growth over the past year, although revenue per share has been declining for the last five years. The company operates with a substantial market capitalization of $9.78 billion but is facing financial challenges as seen in its Altman Z-score of 1.1, putting it in the distress zone, which implies a bankruptcy possibility in the next two years.
Despite these challenges, the company displays some strengths, such as a high Piotroski F-Score of 8 indicating a very healthy situation, and a close-to-three-year high dividend yield. However, the Beneish M-Score suggests possible manipulation of financial results. Wynn Resorts' strategic expansion plans and recent performance improvements in the U.S. could drive future growth, although investors should weigh these against the financial warning signs.
