What Happened?

Shares of luxury hotels and casino operator Wynn Resorts (NASDAQ:WYNN) jumped 10.7% in the afternoon session after the company reported strong fourth-quarter results that blew past analysts' EPS and revenue estimates. However, Casino revenue came in below expectations, with weakness in Wynn Macau offsetting gains in Wynn Palace and Las Vegas. Adjusted property EBITDAR declined slightly as softer results in Macau and Encore Boston Harbor weighed on overall profitability. 

Looking ahead, the company reiterated its growth focus, including its Wynn Al Marjan Island development in the UAE, which is expected to enhance long-term cash flow. Overall, we think this was still a solid quarter with some key areas of upside.

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What The Market Is Telling Us

Wynn Resorts’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for Wynn Resorts and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 5 months ago when the stock gained 6.3% on the news that a Morgan Stanley analyst upgraded the stock's rating from Equal-weight (Hold) to Overweight (Buy) and raised the price target from $97 to $104. The new target price represents a potential 10% upside from where shares traded before the upgrade was announced.

Wynn Resorts is up 6.5% since the beginning of the year, but at $89.23 per share, it is still trading 17% below its 52-week high of $107.46 from April 2024. Investors who bought $1,000 worth of Wynn Resorts’s shares 5 years ago would now be looking at an investment worth $675.23.

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