Wynn Resorts Ltd (WYNN) recently hit a new multi-year high above $126 as the company’s China based Macau resort continues to see huge gains. With a recent 44% earnings surprise and bullish 33% growth projection, this Zacks #2 rank stock has all the right moves.
We got an update on Wynn’s business on February 10 with Q4 results that came in well ahead of expectations.
Fourth-Quarter Results
Revenue for the period was up 53% from last year to $1.2 billion. Earnings were also strong, coming in at 91 cents, 44% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 39% over the last four quarters.
The good quarter was driven by amazing gains in the company’s Macau resort, which saw sales increase 79.5% from last year to $912 million. Las Vegas is also starting to perk up for Wynn, where sales were up 8% from last year.
Financial Profile
The strong earnings momentum has enable Wynn to strengthen its balance sheet, with cash and equivalents of $1.3 billion while long-term debt fell $302 million to $3.3 billion.
Estimates
We saw some bullish movement in estimates off the good quarter, with the current year adding 38 cents to $3.08 and the next-year estimate gaining 49 cents to $4.09, a bullish 33% growth projection.
Valaution
In spite of the recent gains, the valuation picture still looks decent, with a PEG ratio (PE/Growth) of 1.27%, beyond the value benchmark of 1 but not unreasonable considering the growth coming out of Macau.
12-Month Chart
On the chart, WYNN recently hit a new multi-year high at $132.25 on the good quarter. Look for support from the long-term trend on any weakness, take a look below.
Read the Jan 5 WYNN article here
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Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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