Why Analysts are placing Bets on Casino Stock Wynn

Our members continue to see big gains since we originally called this one. Be sure to sign up today!

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.

Leave a Reply

Your email address will not be published. Required fields are marked *