Casino Operator Wynn Resorts (WYNN) posted first-quarter results that outperformed the stock market close on Tuesday, and the company announced a dividend increase. But the revenue missed some estimates.
Estimates: Earnings per share increased 58% to $ 1.96, up 16% from $ 1.709 billion, according to Zacks Investment Research. FactSet Expected Sales of $ 1.75 Billion
Results: Sales increased 20.5% to $ 1.72 billion, helped by Macau-based resorts Wynn Palace and Wynn Macau, as well as Las Vegas. Earnings per share were $ 2.30.
Wynn said he had approved a cash dividend of 75 cents per share to be paid to registered shareholders on May 29, 17 May, representing a 50% increase over the previous quarter. The move, the company said, reflects "continued strength and stability in our operations".
Stock : Equities fell 0.8% lower after-hours today and fell back from buying range after initially clearing a cup with a bottom-up point of 192.85 in the last week.
Las Vegas Sands (LVS) reporting a 0.1% late on Wednesday. The Hong Kong-based Melco Resorts & Entertainment (MLCO) remained unchanged after the bell and came back into the market. Other US Focuses MGM Resorts International (MGM), whose hotel resorts are located on the Las Vegas Strip, remained inactive after graduation. MGM reports on Thursday.
Gambling in Macau, the global gambling center, rose in the first quarter, exceeding expectations in January and March, but narrowed in February. In the fourth quarter, Wynn's earnings trebled in terms of gaming earnings from the region, which is the only place in China where gambling is legal.
Nonetheless, the focus of Wynn Resorts on the consequences of CEO Steve is likely to lie Wynn's departure for allegations of sexual misconduct. Steve Wynn has since agreed to sell his stake in the company, and the company has announced that it will sell new shares to the Galaxy Entertainment Group, which operates resorts in Macau.
Developments have increased the prospect of selling Wynn Resorts. MGM is said to have thought about an offer for the company. The Wall Street Journal reported that Wynn was discussing selling his Boston Harbor Resort to MGM. Regulators in Massachusetts and Nevada are investigating the allegations against Steve Wynn. Wynn said in the company's earnings release that it expects Wynn Boston Harbor to open in the middle of next year.
Wynn Resorts has its "dependence on Stephen A. Wynn" as a risk to its business.
The company has appointed three women to its board after an increase from Elaine Wynn, Steve Wynn's ex-wife, who is also the largest shareholder of the company, was demanded by its original founders. On Monday, she called on shareholders not to re-elect John Hagenbuch as a director of the company
Hagenbuch is a member of a special committee to investigate the allegations against Steve Wynn. Elaine Wynn said in a letter to shareholders that Hagenbuch was a "longtime close friend" of Steve Wynn, adding, "I find this apparent conflict deeply disturbing."
Wynn Resorts responded to this letter "to continue the positive momentum that has accompanied its recent initiatives and focuses on the future."
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