Wynn Earnings A Win For Casino Stocks (WYNN, LVS, MGM, MPEL, PENN)

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Shares of Wynn Resorts (WYNN) are surging 6% after the operator of the Encore and Wynn casinos said its first-quarter profit climbed to $173.8 million, or $1.39 a share, from $27 million, or 22 cents a share. The company said business in Las Vegas is improving and Macau is booming. Revenue in those markets rose 24% and 47%, respectively, Wynn said.

Wynn’s strong results are helping the Casino Stocks Index to a 2.9% gain. Wynn’s total sales for the first quarter jumped 39% to $1.26 billion, topping the $1.16 billion analysts were expecting. The company said it is preparing to build a third property in Macau and expects approval for that project shortly, Bloomberg News reported.

Las Vegas-based Wynn also announced it will double its quarterly dividend to 50 cents a share from 25 cents. Wynn said its Las Vegas average daily room rate rose 18% in the first quarter, with occupancy down 1.5% to 87.9%, Bloomberg reported. Jefferies reiterated a “buy” rating on Wynn shares while boosting its price target on the stock to $174 from $141. Hudson Securities raised its price target on Wynn to $146 from $129.

Shares of Wynn rival Las Vegas Sands (LVS), the operator of the Palazzo and the Venetian, are higher by 2% as are shares of MGM Resorts International (MGM). Macau player Melco Crown Entertainment (MPEL) and Penn National Gaming (PENN) are also up 2% each.

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Tags: LVS, MGM, MPEL, PENN, WYNN