Wynn Resorts this month reported fourth-quarter revenue and earnings far below expectations — causing analysts to revise their estimates downward for both this year and next — but gaming experts doubt it will affect the company's planned Everett casino.
Adjusted earnings per share came in at $1.20, missing the Zacks Investment Research consensus estimate of $1.44 and plunging 47 percent from the same quarter last year.
Net revenue also fell 25 percent year-over-year to $1.14 billion, well below the consensus of $1.24 billion.
This was due in large part to a 32 percent drop in net revenue from Wynn's Macau casino, which accounted for about two-thirds of total net revenue in the quarter, Zacks said. Net revenue from the company's Las Vegas casino decreased 6 percent.
Michael Weaver, a Wynn spokesman, said fourth-quarter results will have no impact on the company's plans to build a $1.75 billion resort casino in Everett.
"Although the slowdown in Macau has been universally felt by every operator there," Weaver said in an email, "Wynn Las Vegas did achieve record earnings before interest, taxes, depreciation and amortization of $515.2 million for 2014, which is also an earnings record for any Las Vegas casino."
I. Nelson Rose, a professor at Whittier Law School in Costa Mesa, Calif., and a leading expert on gaming law, said he thinks Wynn's fourth-quarter results will have no effect on the resort casino the company plans to open in Everett in 2017.
"(CEO Steve) Wynn has always been smart or lucky or both," Rose said. "He got into Macau early, didn't over-expand before the Great Recession and now started diversifying before the Macau market crashed."
If anything, the company's fourth-quarter revenue and earnings "would indicate that he needs the Everett site even more than when he bid for it," said Richard McGowan, a Boston College casino expert. "It is the last big market in the Northeast and has the potential to be a successful site. It will be interesting if he will cooperate with Boston and other towns a bit more."
Boston sued the Gaming Commission last month, asking the court to void the commission's endorsement of the Wynn project and to grant the city the right to hold a binding vote on the planned casino, partly because of the increased traffic it will bring to an already congested Rutherford Avenue and Sullivan Square.
Revere and Somerville also have sued the Gaming Commission since it awarded Wynn the Boston area's sole gaming license.
In an earnings call earlier this month, Wynn told investors, "We are going to be responsible for $50 million a month in revenue for this state, probably another $50 million in related revenues to all the surrounding communities."
On Friday, shares of Wynn Resorts were up 2.99 percent to $159.34.
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