Higher table revenue keeps Wynn Resorts bullish

The stock of casino operator Wynn Resorts (NASDAQ: WYNN) was hammered after it reported lower than anticipated fiscal 2016 third-quarter results in the first-week of November.

Wynn Palace, which was opened recently, generated $42,117 per day from its VIP tables. The mass-market tables generated $4,702 per day. The revenue per table was $12,489, on an average.

In the future, the VIP table revenue is expected to slightly decline, while the revenue from the mass-market table is expected to increase. The average revenue per room was $203 and higher than its competitors.

Ultimately, the analysts expect that Wynn Palace would outperform other properties like the Venetian Macau and Sands Cotai Central.

Wynn Palace

For the current quarter, the analysts anticipate Wynn Resorts to report earnings of $0.84 per share. This compares with $0.75 per share recorded in the quarter ended September. The Wall Street analysts also anticipate revenues of $1.25 billion during the current quarter. The company had reported revenues of $946.9 million in the similar period last year. Wynn Resorts also stated that it expects to grow at 17.99% per annum for the next five years, compared to -10.31% in the past five years.

In a report released last Wednesday, the Citigroup analysts reiterated their buy rating on the stock of Wynn Resorts. A similar opinion was shared by the analysts at Goldman Sachs. The optimistic Morgan Stanley analysts have changed the rating from ‘underperform’ to ‘outperform’.

The institutional buyer Oppenheimer & Co Inc. have increased their holdings in Wynn Resorts by 421.5%. The fund now holds 44,411 shares of Wynn Resorts. Other prominent institutions which have raised their stake in the company are Columbus Circle Investors and Point72 Asset Management L.P. Based on the facts discussed above, we forecast the stock to remain bullish in the short-term.

The stock is currently in an uptrend after consolidating at 98 levels. The stochastic oscillator is out of the bearish territory. The MACD indicator is rising and about to move out of the negative zone.

To gain from the probable uptrend, a binary trader can consider picking a high or above contract as long as the traded price of the stock is not greater than $102. Since we are looking at a price chart of extremely short time frame, a one week time period can be selected for the expiry period.

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