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Shares of Wynn Resorts Limited (NASDAQ: WYNN) surged 3% this morning, waking up in the green shortly after the company reported its second-quarter financial results.
After market close yesterday, Wynn Resorts reported net revenue of $1.367 billion for the second quarter of 2011, compared with net revenue of $1.032 billion reported for the same period in the previous year. The year-over-year increase in net revenue was driven by a 36.7% increase in revenue at Wynn Macau and a 22.8% increase in revenue at Las Vegas.
Wynn Resorts reported adjusted property EBITDA of $447 million for the second quarter of 2011, representing an increase of 58.9% over the same period in the previous year. On a GAAP basis, the company reported second-quarter net income of $122 million, or $0.97 per diluted share, compared with a net income of $52.4 million, or $0.42 per diluted share, reported for the same period in the previous year. The company’s adjusted net income for the second quarter of 2011 was $200.8 million, or $1.60 per diluted share, compared with an adjusted net income of $64.9 million, or $0.52 per share, reported for the same period in the previous year.
Wynn Resorts ended the second quarter of 2011 with cash balances of $1.7 billion. The company’s total outstanding debt at the end of the quarter was $3.1 billion.
The casino operator’s more than doubled net income spurred increased ratings from Anil Daswani of Citi Investment Research, who raised Wynn’s price target to $133.50 from $126 and kept a Sell rating after adjusted earnings topped his estimate of $1.08.
Brean Murray Carret & Co. analyst Ryan Worst also lifted Wynn’s price target, upping it to $200 from $17 on margin improvement in Las Vegas and continued strength in Macau.