Wynn resorts turns bullish on GGR revival in Macau

Wynn Palace CotaiWynn Resorts Limited (NASDAQ: WYNN) is an operator of high-end hotels and casinos. Its stocks have recorded a 12-month high figure of $109.50 on 15th September 2016. After that, there has been a constant reduction in the price of shares around 7% with numbers of $102.14 as on last Friday.

The sudden fall in the stock prices of Wynn Palace is because of the softness in volumes of mass-market casino games at Wynn Palace. It is a newly opened casino resort in Macau’s Cotai region. Another reason for the decline of stock prices is the 14% week-over-week fall in Gross Gaming Revenue (GGR) of Macau.

However, we are optimistic that the stock prices of Wynn Resorts Limited will increase because of the reasons mentioned below.

The Las Vegas which is a Nevada-based company has reported a net income of $70.39 million at the end of 2nd quarter of fiscal 2016. The company is making $0.69 profit per share on total revenue of $1.06 billion. Wynn made a net income of $56.46 million or $0.56 per share on total revenue of $1.04 billion in similar quarter last year. If we exclude the charges, the adjusted net income in Q2 2016 increased from $74.77 million to $108.67 million or $0.74 to $1.07 per share as compared to 2nd quarter 2015.

As on 30th June 2016, the analysts at Zacks estimated that Wynn Resorts Limited would make earnings of $0.91 per share on the total revenue of $1.02 billion. It is to be noted that the company has comfortably exceeded the revenue and earnings as speculated by the analysts.

Wynn Palace

In the current quarter of fiscal 2016, Wynn projects an income of $0.82 per share. The company has beaten the analysts’ figures in every quarter since Q3 2015, and the analysts are optimistic that Wynn will do the same for this present quarter without any doubt. With the opening of Wynn Palace in August this year, a large number of tourists have arrived in Macau.

This casino resort has 1700 hotel rooms with some spa and food-beverages outlets. It will have a positive impact on the earning of the company in this current quarter. Even the GGR fell past week as per Gaming Inspection and Coordination Bureau of Macau, there is a 1% year-on-year increase in GGR to approximately $2.4 billion in August.

With the increase in visitors and rising opportunities for employment, the Las Vegas casino will have higher earning regarding revenue. We are optimistic that with the current scenario, the share prices of Wynn Resorts Limited will rise in the current quarter of fiscal 2016.

The stocks of this casino company have broken the upper band of 91 to 102 range where it was moving in the last five months. There are indications of buying pressure in the stocks of Wynn because Chaikin Money Flow (CMF) Oscillator has moved into the positive territory. On a positive note, the next stock’s resistance will exist at 119 range.

Wynn Resorts Stock Price September 26th 2016

Wynn Resorts Stock Price: September, 26th 2016

If you are a Binary Options trader, you may opt for One Touch CALL Option and set the target price to $110.

It is so because the share prices of Wynn is likely to increase by the end of this quarter. You should go for a contract and select a trade expiry period on 3rd week of October.

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