Investors betting on casino stocks are seeing a nice payoff Thursday.
Wynn Resorts (WYNN), which operates casinos in Las Vegas and Macau, blew past analysts' expectations, reporting earnings per share late Wednesday of $1.48 and announcing a special $7.50 dividend. Aptly named Wynn also said it expects to double its quarterly dividend to $1 in fiscal 2013.
One note of caution: revenue was just in line with estimates. That's symptomatic of the rough patch casinos have hit lately.
Earlier this month, the Nevada Gaming Board said revenue from the Vegas strip had fallen off in August. But Wynn, along with rivals Las Vegas Sands (LVS), and MGM Resorts International (MGM), don't just count on Vegas for their revenue. Unfortunately, that's also been a bit of a trouble spot, with gaming in Macau also said to be falling off a bit.
Still, shares of all three companies have surged between 16% to 27% over the past three months and StockTwits traders have plenty to say.
Very good point. Macau seems to be a bit of a trouble spot lately. Wynn's revenues took a hit there, declining 4.3%. Most of the decline came from a drop in turnover at mass market table games and slot machines.
On the bright side, the VIP set continued to shell out. And Wynn has big plans for expanding in Macau after getting the green light from the government to move ahead with a $3.5 billion to $4 billion project.
Just like a real casino, casino stocks can be a gamble for investors so one good quarter is just that: one good quarter.
Las Vegas Sands has the added benefit (or challenge) of having a presence in Singapore, where business has largely been paying off.
Everyone's a critic. In all seriousness, it's a tough business to be in. So investors should place their bets wisely.
|Snapchat stock loses $800 million after Rihanna responds to offensive ad|
|Sean Hannity jabs Shep Smith in sign of rift between Fox News opinion and news|
|31,000 Toys 'R' Us employees: No job and no severance|
|Amazon didn't kill Toys 'R' Us. Here's what did|
|It's not tariffs keeping American cars out of Japan, it's the market itself|