Wynn Resorts (Nasdaq:WYNN) announced its results for the most recent quarter on October 24, 2012. Wynn Resorts is a developer, owner and operator of destination casino resorts. It owns and operates three: Wynn Las Vegas, Encore at Wynn Las Vegas, and Wynn Macau.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Wynn posted an EPS above analyst expectations, despite revenues falling short of predictions. The company reported adjusted net income of $1.48 per share versus the $1.33 per share estimate and revenues of $1.3 billion versus the $1.36 billion estimate. Revenue climbed 0% from the same period last year. The company's net income for the quarter was $112 million. According to the reported number, this is down 11.8% from last year's figures.
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.31 per share, down from $1.36 90 days ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved down from $5.46 a share to $5.39 over the last 90 days.