Wynn Resorts (WYNN) shares initially fell after the company released disappointing earnings results after the bell on Tuesday, but they quickly broke back into positive territory, trading up a little less than 1%. Since the start of May, shares are down about 27%.
Wynn posted $1.38 of EPS, 16 cents below expectations. Revenue of $1.25 billion fell below expectations for $1.36 billion. Revenue was down in both the U.S. and Macau. Casino revenues in Las Vegas plunged 38% on a year-over-year basis.
“Net revenues for the second quarter of 2012 were $1,253.2 million, compared to $1,367.4 million in the second quarter of 2011. The revenue decline resulted from a 7.1% decrease in revenues from our Macau Operations and an 11.6% decline in our revenues in Las Vegas, as both properties were negatively impacted by lower hold in the 2012 quarter.”
The company also offered an update on its Cotai Strip property, where it will build a new casino resort.
“On May 2, 2012, Wynn Macau�s land concession contract was published in the official gazette of Macau. This concession contract has an initial term of 25 years with the right to renew it for additional successive periods, subject to government approval. The Company anticipates constructing a full scale integrated resort containing a casino, approximately 2,000 rooms and suites, convention, retail, entertainment and food and beverage offerings on this land. The Company currently estimates the project budget to be in the range of $3.5 billion to $4.0 billion.”
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