I had made an additional investment in Wynn Resorts $Wynn(WYNN)$ at $94.89 on May 8, 2024 as part of the dollar cost averaging strategy, given the recent performance and outlook for the company.
1. Strong First-Quarter Performance:
Wynn Resorts' first-quarter earnings report demonstrates solid growth and profitability. The company significantly exceeded Wall Street estimates, reporting operating revenue of $1.86 billion (up from $1.42 billion last year) and an adjusted profit per share of $1.59 (well above last year's 29 cents and analysts' estimate of $1.27). This strong financial performance suggests that your investment in Wynn at $94.89 may have potential for further appreciation.
2. Macau Market:
Wynn's properties in Macau, including the Wynn Palace and Wynn Macau, generated the highest share of revenues. This is a positive sign, as the post-pandemic rebound in travel to Macau provides a favorable tailwind for Wynn's operations. If this trend continues, Wynn's Macau properties could drive significant growth.
3. Post-Pandemic Recovery:
The travel and entertainment industries are experiencing a recovery after the pandemic, particularly in key markets like Las Vegas and Macau. Wynn Resorts' ability to capitalize on this rebound bodes well for its future performance.
4. Management's Confidence:
CEO Craig Billings' comments about the strong momentum in Wynn's business throughout 2023 and the first quarter of 2024 indicate a positive outlook. Management's confidence in the company's future performance is an encouraging sign for investors.
In a nutshell, the investment in Wynn Resorts at $94.89 seems to have good potential for appreciation given the company's strong financial performance and positive outlook.
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