Wynn Resorts beats expectations in first quarter
Wynn Resorts reported first quarter earnings on Tuesday, easily beating analysts’ expectations on revenue. This was driven by a surge of activity in Macau – the only place in China where gambling is legal – and, the company says, reflects the “ongoing strength and stability across our operations.” It’s great news for investors in the company, who have had their spirits dampened in recent months following allegations of sexual misconduct against former CEO Steve Wynn.
Wynn’s share price has appreciated by 47% over the past 12 months
SOURCE: Yahoo Finance
Analysts had expected strong performance from Wynn this quarter. They saw revenue increasing by 16% year on year to $1.709 billion. The company overshot this prediction, bringing in $1.72 billion – a 20.5% increase from the year-ago quarter. The company also approved a 75¢ per-share cash dividend – 50% higher than that offered in the previous quarter.
A recent drag on the company has been news concerning its former CEO, Steve Wynn. Wynn’s new boss, Matthew Maddox, was clear to distance himself from his predecessor. On an earnings call, he said “Steve Wynn is no longer a shareholder in his business,” and implied he would be following a different path regarding leadership.
He said: “as CEO, I’m not interested in looking in the rearview mirror,” and clarified his current efforts to pick up Wynn’s reputation: “I’m only focused on the future. And in order to focus on the future, we had to make meaningful progress over the last 60 days so that on each and every one of these calls, we are talking about our business and we are talking about our people and we are talking about our growth.”
Dominion holds Wynn Resorts in its Global Trends Luxury Fund.
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