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About those big bad corporations sitting on their money...
Posted: Mon Jul 18, 2011 8:10 pm
by CID1990
Re: About those big bad corporations sitting on their money.
Posted: Mon Jul 18, 2011 8:28 pm
by Skjellyfetti
Wynn Resorts Ltd (WYNN.O) posted second-quarter profit and revenue that handily topped Wall Street estimates as revenue at its Wynn Macau (1128.HK) unit soared 36.7 percent and business in Las Vegas improved.
Driven by robust demand from mainland Chinese, gambling revenue in Macau, the only place in China where gambling is legal, surged 52 percent in June from a year earlier, according to government statistics.
"They had stupendous results in both Macau and Vegas," said Janet Brashear, an analyst with Sanford C. Bernstein & Co. "Vegas is the biggest surprise," she said, with earnings "a lot more solid for the balance of the year than we might have expected."
Adjusting for one-time items, Wynn earned $200.8 million, or $1.60 per share, beating analysts' average forecast of $1.04 per share, according to Thomson Reuters I/B/E/S.
In the same period last year, Wynn earned $64.9 million, or 52 cents per share.
Wynn's revenue in Las Vegas rose 22.8 percent to $390.8 millon. Adjusted property earnings rose 103.7 percent to $132.7 million. The rise was due to higher margins "really across the board," CFO Matt Maddox said on the call, including in gambling revenue, VIP services, and non-gaming segments including nightclubs, catering, and restaurants.
The company's Macau revenue climbed 36.7 percent to $976.5 million, while property earnings rose 45.4 percent to $314.3 million in the second quarter.
Shareholders may see another special dividend at the end of the year, said Brashear.
"We are always looking for opportunities to distribute money to our shareholders," said Wynn.
Shares of Wynn, which closed at $164.89 on the Nasdaq. rose 2 percent to $168.27 in extended trade after the announcement. The shares have risen 59 percent so far this year.
http://www.reuters.com/article/2011/07/ ... 0220110718" onclick="window.open(this.href);return false;
Re: About those big bad corporations sitting on their money.
Posted: Tue Jul 19, 2011 12:19 am
by CID1990
There are a couple big red flags in the article you quoted, SK.
Aside from those, not sure how Wynn's earnings report has much bearing on his opinion of the economic environment.
How many invitations have you gotten in the mail from Vegas casinos recently? (Here's a hint: I see visa applicants in SE Asia EVERY DAY with casino invites in hand from some of the Wynn hotels. They are seeing lots of them in Guangzhou, Beijing and Shanghai, as well. These people are applying for visas, booking $1500 plane tickets just for a couple days in Vegas. Chinese. Asians. Get it?)
I'm sure they would be bringing in even more Asian money if it wasn't for our visa rules, like he mentioned in the conference call.
Re: About those big bad corporations sitting on their money.
Posted: Tue Jul 19, 2011 6:54 am
by Ivytalk
Wynn also says that he's a Democratic businessman who supports Harry Reid. Why not? Reid is a faithful water-carrier for the gaming industry.
I can't complain too much. We do own some stock in Wynn's company, and it's done OK so far!
Re: About those big bad corporations sitting on their money.
Posted: Tue Jul 19, 2011 7:56 am
by Skjellyfetti
Ivytalk wrote:Wynn also says that he's a Democratic businessman who supports Harry Reid. Why not? Reid is a faithful water-carrier for the gaming industry.
Eh, he gives big money to both sides. Looks like he gives money to whoever he thinks will win.
http://www.newsmeat.com/billionaire_pol ... e_Wynn.php" onclick="window.open(this.href);return false;
Re: About those big bad corporations sitting on their money.
Posted: Tue Jul 19, 2011 1:20 pm
by houndawg
CID1990 wrote:There are a couple big red flags in the article you quoted, SK.
Aside from those, not sure how Wynn's earnings report has much bearing on his opinion of the economic environment.
How many invitations have you gotten in the mail from Vegas casinos recently? (Here's a hint: I see visa applicants in SE Asia EVERY DAY with casino invites in hand from some of the Wynn hotels. They are seeing lots of them in Guangzhou, Beijing and Shanghai, as well. These people are applying for visas, booking $1500 plane tickets just for a couple days in Vegas. Chinese. Asians. Get it?)
I'm sure they would be bringing in even more Asian money if it wasn't for our visa rules, like he mentioned in the conference call.
I hope we're tightening the slots in anticipation.....