Shares of Wynn Resorts, Limited surged to a three-year high earlier this week after the company beat quarterly revenue estimates by nearly 9%, posting a 29.9% year-over-year increase. A resurgent Macau casino and resort environment drove the impressive results, attracting heavy buying interest that has also lifted competitor Las Vegas Sands Corp. That company reports fourth quarter earnings after Thursday’s closing bell.
Macau’s gaming revenues are booming once again, rising a healthy 22.6% year over year in November. This follows a period of limp growth, driven by a Chinese government crackdown on capital flight as well as an August typhoon that buffeted the island with an estimated $1.42 billion in losses. Wynn’s local market share has now risen to 17%, according to CEO Steve Wynn, while generating almost $4 million in daily operating profits. This bodes well for continued upside for the stock in the coming months. (See also: Wynn Resorts: The Gaming Stock for the Chinese Market.)
Impressive Macau growth has lifted Wynn Resorts and Las Vegas Sands to new highs, but both stocks are now extremely overbought. …read more
Read more here: Macau Resurgence Lifts Wynn Resorts Stock to 3-Year High
Category: WYNN, LVS