Wynn Increases Share Repurchase Program to $1 Billion After Q3 Earnings Fall Short of Expectations


Published on: November 4, 2024, 06:46h. 

Last updated on: November 4, 2024, 06:46h.

Stocks of Wynn Resorts (NASDAQ: WYNN) saw a decline in the after-hours trading session following the announcement that it has increased its share repurchase program to $1 billion. The disappointing results in the third quarter led to the sell-off.

Wynn Civic 50
Wynn Las Vegas. The operator’s third-quarter results missed estimates, but it’s boosting its buyback program. (Image: YouTube)

As of now, the gaming stock had dropped by 3.45% in extended trading after reporting third-quarter non-GAAP earnings per share of 90 cents on revenue of $1.69 billion. Analysts were anticipating earnings of $1.10 per share on sales of $1.73 billion. Macau, being the company’s largest market, was the reason behind the subdued results as revenue and EBITDAR at the Wynn Palace integrated resort declined year-over-year.

Even though the Wynn Macau casino hotel performed better during the July-September period, it was not enough to offset the declines at the sister property.

Operating revenues from Wynn Macau were $352.0 million for the third quarter of 2024, an increase of $56.9 million from $295.0 million for the third quarter of 2023. Adjusted Property EBITDAR from Wynn Macau was $100.6 million for the third quarter of 2024, compared to $77.9 million for the third quarter of 2023,” according to the operator.

Despite dragging down Wynn’s third-quarter results, Macau could bounce back this quarter with October’s GGR in the region surpassing expectations, possibly leading to a strong quarter overall.

Wynn Is Part of Gaming Buyback Brigade

Several gaming companies have announced their plans for share repurchases this year. Las Vegas-based Wynn is significantly boosting its existing buyback program.

On November 1, Wynn’s board of directors approved an increase in the buyback program to $1 billion. With $247.7 million still available as of September 30, Wynn spent $117.7 million repurchasing its stock in the third quarter.

“We are optimistic about the company’s future and are committed to providing long-term returns for shareholders,” said CEO Craig Billings in a statement.

Wynn, along with rivals like Caesars Entertainment (NASDAQ: CZR) and Las Vegas Sands (NYSE: LVS), recently announced new buyback initiatives. The gaming company’s buyback action in the third quarter was timely, with an average purchase price of $80.37, well below the current closing price of $95.65. Wynn closed the September quarter with $1.34 billion in cash and $11.79 billion in debt.

Las Vegas Also Weighed on Wynn Q3 Numbers

Despite previous quarters of lackluster Macau data, Wynn was able to offset some of the weakness with its Las Vegas operations. However, this was not the case in the July-September period.

During this period, Las Vegas revenue fell by $11.8 million to $607.2 million, while adjusted property EBITDAR decreased to $202.7 million from $219.7 million a year earlier. Table games win percentage at Wynn’s Las Vegas properties was 23.3%, down from 26% in the same period last year.

This indicates that Strip operators are facing challenges in comparison to the previous year, as highlighted by analysts recently.



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