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Wynn Resorts' Earnings Get Helping Hand From Dividend Boost

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Wynn Resorts Ltd. (NASDAQ: WYNN) reported third-quarter 2014 results after markets closed on Tuesday. The casino and resort operator posted adjusted diluted earnings per share (EPS) of $1.95 on revenues of $1.37 billion. In the same period a year ago, the company reported EPS of $1.84 on revenues of $1.39 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.84 and $1.37 billion in revenues.

On a GAAP basis, Wynn reported quarterly diluted EPS of $1.88.

Wynn Resorts raised its quarterly dividend to $1.50, up $0.25 a share from the current level of $1.25. The company also declared a special dividend of $1.00 a share. Both are payable on November 25 to shareholders of record on November 12.

Wynn’s revenues fell 5.6% in Macau, to $942.3 million. In the company’s Macau VIP segment, table games turnover was down 17.4% to $25.1 billion and the company’s win on those wagers was 2.78%, within the expected range of 2.7% to 3%, but below the 3.04% win ratio the casino saw in the year-ago quarter. The company’s win in its Macau mass market table games rose 36.4% to $327.2 million in the quarter.

Las Vegas revenues rose 9%, but Las Vegas revenues account for just 31% of the company’s total. Net casino revenues in Las Vegas rose 10.5% year-over-year to $178.6 million.

Wynn did not offer guidance in its earnings release, but the consensus estimate for the fourth quarter calls for EPS of $1.91 on revenues of $1.41 billion. For the full year, the consensus estimate calls for EPS of $8.19 on revenues of $5.7 billion.

Shares traded up more than 3% at $191.16 in Tuesday’s after-hours session, in a 52-week range of $157.48 to $249.31. Thomson Reuters had a consensus analyst price target of around $218.60 before the report.

ALSO READ: More Negative Analyst Views for Macau Casinos

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