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Wynn Resorts craps out on its fourth quarter numbers

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Wynn Resorts Q4 Earnings fall short of expectationsThis afternoon, Wynn Resorts (NASDAQ: WYNN) had its turn in the earnings lineup, and the company failed to meet analyst estimates for the quarter, and is being punished in after hours trading as a result.

Going into this afternoon's earnings announcement, analysts had been hoping to see the company show earnings of $0.44 per share on revenues of $703.53 million. Adjusted earnings for the quarter were far below this, with a reported $0.07 cents per share on only $614.3 million in revenues.


Including various non cash charges and a $98.8 million tax payment, the company actually swung to a loss in the quarter of $159.6 million, or -$1.49 per share.

For the full year, the company took a serious hit in gambling revenues, with a massive 25.3% drop in gambling revenues during 2008 compared to those of 2007. Non-gambling revenues were also lower during 2008, but not nearly as sharply, with a reported 37% drop compared to 2007.

Wynn is not alone in its hard times. The current recession has led to consumers putting more money away, and less out on the casino tables. Last year, tourism to Vegas' strip suffered its worse annual decline.

After hours traders are selling off the stock which is currently down a bit over 11% in extended hours trading. This is slightly higher than where it was when I started writing this piece when it was off by about 16%. We will get a better idea of how the market reacts to this afternoon's earnings announcement in the morning when full trading is resumed.

It's fairly obvious that people are just a bit too concerned with the economy and their economic future to be running to Vegas and betting away their hard earned money. Until the overall economy gets back on its feet, and we stop hearing so much about foreclosures and layoffs hitting America, casino stocks like Wynn are probably not the best bet at this time. For once, the house did not win this time around.

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Last updated: November 08, 2009: 05:51 AM

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