Markets
LVS

Wynn Resorts Falls on Delay in Completion of Wynn Palace

Wynn Resorts Ltd. 's WYNN general contractor Leighton Holdings Limited recently announced a delay in the completion date of the Wynn Palace project in the Cotai area of Macau. The long awaited resort was earlier scheduled to open on Mar 25, 2016. However, it has been delayed by three months and is now expected to open on Jun 25, 2016. However, no reason was cited for the delay.

Shares Down

Wynn generates over 70% of its revenues from Macau resorts. Given the decent visitation pattern in Macau, infrastructure development and government's efforts to boost tourism in Macau, the resort is expected to give a boost to revenues going forward. Moreover, the full scale integrated resort in Cotai would increase the company's dominance in the Cotai strip. The delay obviously came as a disappointment as shares fell 3%.

The Story Thus Far

We would like to remind investors that the company is already bearing the brunt of a sluggish environment in Macau owing to the nationwide crackdown on corruption in China. Macau officials have imposed strict restrictions on VIP gamblers to stop billions of dollars from being siphoned off illegally from mainland China to Macau. This led to a decline in footfall in the region, thereby hurting the revenues of the company. In fact, Wynn Resorts' revenues have been missing the Zacks Consensus Estimate consistently over the past four quarters

More About the Wynn Palace Project

Wynn Palace featuring 1,700 hotel rooms, a lake with gondolas and fountains, a meeting space, a casino, a spa, stores and food-and-beverage outlets will be the first resort for the company in Cotai area of Macau. However, it is expected to face competitive pressure from other new openings in the region. While Melco Crown Entertainment Ltd. MPEL and Galaxy Entertainment Group Ltd. opened new resorts in the region, Las Vegas Sands Corp. LVS and MGM Resorts International's MGM resorts are scheduled to come up in 2016. These openings may pose a huge threat to the company's business in the future.

Wynn Resorts carries a Zacks Rank #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

LAS VEGAS SANDS (LVS): Free Stock Analysis Report

WYNN RESRTS LTD (WYNN): Free Stock Analysis Report

MGM RESORTS INT (MGM): Free Stock Analysis Report

MELCO CROWN ENT (MPEL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

LVSMGMWYNN

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More