Analyst reduces some Wynn Resorts estimates

Jul 8, 2009 8:24 PM
Staff & Wire Reports |

An analyst lowered some of Wynn Resorts Ltd.'s (WYNN) estimates Wednesday, citing weaker-than-expected Macau gaming revenue results and soft business conditions.

Dennis Forst of KeyBanc Capital Markets said in a client note that Macau's June gaming revenue decline of 17 percent prompted him to reduce his second-quarter forecast for the Las Vegas-based casino operator to a loss of 7 cents per share from a profit of 3 cents per share.

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He now anticipates a third-quarter loss of 7 cents per share and a fourth-quarter loss of 3 cents per share. Forst previously predicted earnings of 13 cents per share and 14 cents per share for the respective quarters.

The analyst expects a full-year loss of 42 cents per share. His prior forecast was for a 15 cents per share profit.

"While we believe that Wynn will be able to ride out this economic cycle, the stubborn recession will likely keep a lid on cash flows for several more quarters," Forst wrote in a client note.

He reiterated a "Hold" rating.

Shares of Wynn Resorts fell 15 cents to $30.60 in morning trading.

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