Wynn Resorts, Limited WYNN is scheduled to report third-quarter 2026 results on Nov. 5, after the closing bell.
WYNN’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, and missed twice, the average miss being 1.11%.
Trend in the Estimate Revision of WYNN
The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 58 cents, indicating a decline of 32.6% from the 86 cents reported in the year-ago quarter.
Wynn Resorts, Limited Price and EPS Surprise
Wynn Resorts, Limited price-eps-surprise | Wynn Resorts, Limited Quote
For revenues, the consensus mark is pegged at nearly $1.77 billion, suggesting a fall of 3.4% from the prior-year quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors Likely to Shape Wynn Resorts’ Quarterly Results
Revenues
Wynn Resorts’ third-quarter revenue performance is likely to have faced pressure from an unusually low casino hold in Las Vegas and softer early-quarter gaming volumes in Macau. In Las Vegas, management indicated that casino hold was unusually low in July, which is expected to have weighed on gaming revenues despite a solid underlying drop and improving RevPAR. Ongoing room renovations at Encore are also likely to have constrained hotel revenues on peak-demand days, with unavailable room inventory expected to result in approximately $2-$4 million of foregone revenues per quarter through the first half of 2027.
Macau operations are also likely to have faced pressure early in the third quarter. Rolling volumes and mass-market drop were running slightly below the prior-year level as the World Cup coincided with normal seasonal weakness. Although gaming activity began to recover in the second half of July and into early August, the softer start to the quarter may have limited revenue growth. VIP activity also showed some moderation, while strength in the mass segment likely provided a partial offset.
The company’s Las Vegas hotel business may also have faced pressure from renovation-related room constraints, even as premium leisure and group demand remained relatively resilient. Our model predicts third-quarter room revenues in Las Vegas to fall 1.5% year over year to $184 million.
Dismal Encore Boston Harbor performance is likely to have affected the company’s performance in the third quarter. Management noted that certain Encore rooms would remain out of service on peak days, limiting the property’s ability to fully capture high-demand periods. Our model predicts third-quarter revenues in Encore Boston Harbor to fall 1.7% year over year to $208.2 million.
Earnings
Wynn Resorts’ bottom line is likely to have been pressured by elevated operating costs, weak gaming hold and renovation-related revenue displacement. In Las Vegas, contractual wage increases, continued investment in premium customer offerings and the cost burden associated with recently opened venues are expected to have raised expenses. Management indicated that Las Vegas operating expenses, excluding gaming taxes, were expected to remain in the range of approximately $4.4-$4.7 million per day through the remainder of 2026.
Macau profitability may also have faced pressure from higher operating expenses, including cost-of-living adjustments, variable costs associated with business volumes and continued investment in the premium customer experience. The Macau market also remained highly competitive, although management indicated that the promotional environment and reinvestment levels were relatively stable. These factors, together with softer early-quarter gaming volumes, are likely to have limited margin expansion in the to-be-reported quarter. Our model predicts third-quarter total operating expenses to rise 5.1% year over year to $1.6 billion.
What Our Model Says About WYNN Stock
Our proven model does not conclusively predict an earnings beat for Wynn Resorts this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that is not the case here.
WYNN’s Earnings ESP: Wynn Resorts has an Earnings ESP of -17.59%. 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 currently has a Zacks Rank #4 (Sell).
Stocks With the Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat.
Fox Corporation FOX currently has an Earnings ESP of +9.09% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
For the to-be-reported quarter, FOX is expected to register a 28.1% increase in earnings. FOX reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 35.9%.
American Public Education, Inc. APEI currently has an Earnings ESP of +1.56% and a Zacks Rank of 2.
APEI’s earnings for the to-be-reported quarter are expected to decrease 13.3%. American Public Education reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 150.9%.
Planet Fitness, Inc. PLNT currently has an Earnings ESP of +0.53% and a Zacks Rank of 3.
PLNT’s earnings for the to-be-reported quarter are expected to remain flat. Planet Fitness reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 9.3%.
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Wynn Resorts, Limited (WYNN): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).