Wynn Resorts LTD. is scheduled to report earnings after Wednesday’s close. The stock hit a record high of $249.31/share in 2014 and is currently trading near $68/share. The stock is prone to big moves after earnings reports and can easily explode if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily go down. To help you prepare, here’s what the street expects:
The company is expected to report a loss of ($1.20)/share on revenue of $852.25 million. Meanwhile, the so-called Whisper number is a loss of ($1.09)/share. The Whisper Number is the unofficial take on the street’s revenue.
A closer look at the basics:
The company was profitable but lost money in 20202 during the Covid-19 shutdown and has been losing money ever since. The Street expects the company to turn profitable in 2023, which is an encouraging sign.
A closer look at the technique:
Technically, the stock is in a private bear market as the stock is down -30% from its 52-week high. The bulls want to see the stock shortfall rise after the gains are announced and the bears want to see the shortfall fall. The good news for the bulls is that the stock is no longer going down – meaning the lows from earlier this year have held up – and the next step is for the stock to move up. If the stock can move above $75, that’s a bullish sign.
Pay attention to how the stock reacts to the news:
From where I sit, the main trait I look for during earnings season is how the market and a specific company react to the news. Remember, always keep your losses small and never argue with the tape.