Wynn Resorts, Limited Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

It's been a sad week for Wynn Resorts, Limited (NASDAQ:WYNN), who've watched their investment drop 12% to US$86.72 in the week since the company reported its third-quarter result. Things were not great overall, with a surprise (statutory) loss of US$0.29 per share on revenues of US$1.7b, even though the analysts had been expecting a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Wynn Resorts

Taking into account the latest results, the consensus forecast from Wynn Resorts' 17 analysts is for revenues of US$7.29b in 2025. This reflects a modest 2.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dive 39% to US$5.29 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.34b and earnings per share (EPS) of US$5.45 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at US$116, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Wynn Resorts analyst has a price target of US$145 per share, while the most pessimistic values it at US$93.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Wynn Resorts' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.8% growth on an annualised basis. This is compared to a historical growth rate of 8.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Wynn Resorts.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Wynn Resorts' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$116, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Wynn Resorts. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Wynn Resorts analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Wynn Resorts is showing 3 warning signs in our investment analysis , and 2 of those are concerning...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.