Wynn Lifts Buyback Plan to $1B as Q3 Earnings Miss Estimates

Despite the casino operator's announcement that it increased its share repurchase program to $1 billion, Wynn Resorts' (NASDAQ: WYNN) stock fell during Monday's after-hours session. The selloff was brought on by disappointing third-quarter results.

Following the release of third-quarter non-GAAP earnings per share of 90 cents on revenue of $1.69 billion, the gaming stock was down 3.45% in extended trade as of this writing. On $1.73 billion in sales, analysts projected earnings of $1.10 per share. The company's biggest market, Macau, was the cause of the lackluster performance, as the Wynn Palace integrated resort's sales and earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) decreased year over year.

The Wynn Macau casino hotel did better from July to September, but its success did not counteract its sister property's losses.

"Operating revenues from Wynn Macau were $352.0 million for the third quarter of 2024, an increase of $56.9 million from $295.0 million for the third quarter of 2023. Adjusted Property EBITDAR from Wynn Macau was $100.6 million for the third quarter of 2024, compared to $77.9 million for the third quarter of 2023,” according to the operator.

Although Wynn's third-quarter results were negatively impacted by the Chinese territory, experts have noted that October gross gaming revenue (GGR) there exceeded forecasts; this could be the case for the entire quarter.

The Gaming Buyback Brigade includes Wynn

Numerous gaming companies have made plans to repurchase their shares during the year. Wynn, a company based in Las Vegas, is significantly expanding a repurchase program that was already in place.

Wynn's board of directors authorized a $1 billion increase in a prior buyback attempt on November 1. As of September 30, that program has $247.7 million left in capacity after Wynn repurchased $117.7 million worth of its stock in the third quarter.

“We are excited about the outlook for the company, and we will continue to focus on driving long-term returns for shareholders,” said CEO Craig Billings in a statement.

Wynn announces new repurchase initiatives alongside competitors like Caesars Entertainment (NASDAQ: CZR) and Las Vegas Sands (NYSE: LVS). Taking place at an average price of $80.37, which was significantly lower than Monday's closing price of $95.65, the gaming company's third-quarter repurchase action was well-timed. At the end of the September quarter, Wynn had $1.34 billion in cash on hand and $11.79 billion in debt.

Wynn Q3 Numbers Weighed on Las Vegas as Well

Wynn was able to somewhat offset that shortfall with its Las Vegas operations in previous quarters of slack Macau data, but this wasn't the case during the July–September period.

Revenue in Las Vegas fell $11.8 million to $607.2 million over that time, while adjusted property EBITDAR fell from $219.7 million to $202.7 million. At the operator's two hotels in Las Vegas, the win percentage for table games was 23.3%, which was lower than 26% during the same time last year.

This is yet another indication that Strip operators are having difficulty with difficult year-over-year comparisons, a problem that analysts have recently brought to light.