Wynn Resorts Shares Fall on Poor Q3 Results and the Absence of Special Dividend

October 21 00:00 2011

New York, October 21 (RainbowNewsLine.com) – Shares of Wynn Resorts Ltd., operator of the Wynn and Encore casinos, dropped 5.3 percent and closed at $123.37 in New York, after it posted profit that fell short of analysts’ estimates and disappointed investors who were hoping that a special dividend would be declared by the company.

Joseph Greff, an analyst with JPMorgan Chase & Co. said that the likely cause of the drop was the company’s failure to declare a special dividend, which it has done in four of the last five years. Wynn’s shares were up 25 percent this year before today.

Stephen Wynn, Chief Executive Officer, said that the board was considering investment opportunities in Macau. Wynn, who is also the company’s founder and chairman, said, “Special dividends are in fact special and there’s no certainty about what the board will decide to do about that going forward,” and clarified that shareholders can still “count on” the 50-cent a share quarterly dividend.

The company’s third-quarter profit excluding some items was $1.05 a share, which missed $1.19 average estimate of 24 analysts. It blamed the annual difference in baccarat winnings for the 8.3 percent decline in net-casino revenue. Greff said that it is possible that a special dividend might be announced early next year after Wynn secures final government approval and financing for the Cotai property.