What are the earnings per share (EPS) expectations for Q2 and how do they compare to analyst consensus?
EPS outlook â Q2âŻ2024
The Wynn Macau Q2 release only mentions revenue guidance ofâŻ$933âŻmillion (ââŻ5.5âŻ% YoY growth) and highlights a resurgence in VIP baccarat and nonâgaming income. The release does not disclose a specific earningsâperâshare (EPS) figure or a forwardâlooking EPS guidance for the quarter. Consequently, there is no disclosed EPS number to compare against analyst consensus in the material you provided.
Trading implications
Because the EPS estimate is missing, the key driver of the stockâs nearâterm price action will be the revenue beat and the qualitative narrative (i.e., âgaming rebounds ahead of expectationsâ). Traders should therefore:
Watch the actual EPS release â when Wynn publishes its Q2 earnings, compare the reported EPS to the consensus (which analysts typically range around $0.30â$0.35âŻEPS for the quarter, based on recent Refinitiv/FactSet consensus). A beat would likely reinforce the bullish sentiment reflected in the 70âpoint sentiment score, while a miss could trigger a shortâterm pullâback despite the revenue beat.
Use technical confirmation â WYNN has been trading above its 50âday SMA and is near the midârange of its 200âday channel. A clean beat on EPS (or even a modest miss with strong revenue) could push the stock above its recent resistance around $50â$52, while a miss on both revenue and EPS would likely test support near $43â$45.
Actionable takeâaway: Until the official EPS figure is released, position sizing should be modest and contingent on the upcoming earnings press release. Consider a longâbiased stance if the forthcoming EPS beats the consensus (i.e., >âŻ$0.35) and volume confirms a breakout above the shortâterm resistance; otherwise, prepare to reduce exposure if EPS falls short of consensus even as revenue exceeds expectations, as the market may price in a ârevenueâvsâprofitâ tradeâoff. Monitoring the actual EPS figure will be the decisive catalyst for the next price move.