Earnings Preview: Wynn Resorts Ltd. (WYNN, LVS, MPEL)

Wynn Resorts, Ltd. (NASDAQ:WYNN) reports earnings after the close.  This is by far one of the more volatile casino and resort names after earnings or news.  First Call has estimates at $0.53 EPS and almost $604 million revenues.

On a static basis options traders appear to only be expecting a move of up to 3.5% to 4%.  Analysts have an average price target of about $105.00 per share.  For most of 2007, shares have traded mostly in a $90.00 to $110.00 trading range.  Unfortunately the chart is rangebound and most non-directional, although the waves of highs on rallies has been a series of lower highs.  As of July, Wynn had almost 7.3 million shares in its short interest, or roughly 14% of the float.

Wynn now has a $10.4 Billion market cap and its shares have traded between $65.51 and $114.60 over the last year.  If you have been to the Wynn in Las Vegas, you’ll know that this is the benchmark for high-end casinos that want to draw high-rollers and upscale tourism business.  That is already known.  What this frequently boils down to is the ongoing developments and gradual continued roll-outs of its Wynn operations in Macau.  Las Vegas Sands (NYSE:LVS) is usually the most tied to Wynn as far as a competitor in Las Vegas and in Macau, and Melco PBL Entertainment (NASDAQ:MPEL) is the ‘future Macau competitor.’

Jon C. Ogg
August 6, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.