Wynn Numbers 'Better Than Feared,' Good For MGM, Says Susquehanna Analyst

Wynn Resorts, Limited

pre-announced its 4Q15 results on Friday, resulting in a 5.1 percent better than consensus estimate for Susquehanna Financial Group, however they weren't enough to change the firm's view that Macau's GGR estimates are likely to be lowered. The firm also noted that they have yet to see indication of a bottom. Susquehanna issued a Neutral rating for WYNN with a PT of $51.50. "Macau is in-line with consensus on EBITDA, but revenues are below expectations. This is certainly better than feared given the new competition in the quarter, helped by better cost controls," says the Susquehanna analyst. MGM Resorts International

benefitted from Las Vegas' Rev PAR which was up +6.8 percent, while Vegas was a 9% percent miss adjusting for the lucky hold. "On a hold adjusted basis, revenues would have been down 3.6 percent Y/Y, EBITDA would have been down 9.2 percent Y/Y, both at the midpoint. Notably, RevPAR was up +6.8 percent Y/Y. Recall MGM guided to at least an 8 percent RevPAR growth for 4Q15, so WYNN's result clearly has positive read-through to MGM given WYNN's consistent underperformance vs. MGM (350bps lower on average in the four quarters)," the firm commented.