Wynn Resorts (NASDAQ: WYNN) saw its shares fall in Monday's after-hours trading even though the casino operator revealed an increase in its share buyback program to $1 billion. Disappointing results from the third quarter prompted the decline in sales. 

At the time of this writing, the gaming stock had decreased by 3.45% in after-hours trading following the announcement of third-quarter non-GAAP earnings per share of 90 cents on revenue of $1.69 billion. Analysts anticipated earnings of $1.10 per share with revenues of $1.73 billion. Macau, the company’s biggest market, was responsible for the lackluster results, as revenue and earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) at the Wynn Palace integrated resort declined compared to the previous year. 

The Wynn Macau casino hotel had improved results from July to September, but its success couldn’t compensate for losses at its sister establishment.

"Operating revenues from Wynn Macau were $352.0 million for the third quarter of 2024, an increase of $56.9 million from $295.0 million for the third quarter of 2023. Adjusted Property EBITDAR from Wynn Macau was $100.6 million for the third quarter of 2024, compared to $77.9 million for the third quarter of 2023,” according to the operator.

Although Wynn's third-quarter results were negatively impacted by the Chinese territory, it may act as a catalyst in the current quarter, as analysts observed that October's gross gaming revenue (GGR) exceeded expectations — a trend that may continue throughout the quarter. 

Wynn Joins Gaming Buyback Team 

During this year, numerous gaming companies have revealed intentions to buy back their shares. In turn, Wynn, located in Las Vegas, is substantially expanding an already established buyback initiative. 

On November 1, the board of directors at Wynn sanctioned raising a prior buyback initiative to $1 billion. As of September 30, that program had $247.7 million left in capacity after Wynn repurchased $117.7 million in stock during the third quarter. 

“We are excited about the outlook for the company, and we will continue to focus on driving long-term returns for shareholders,” said CEO Craig Billings in a statement.

Wynn aligns with competitors like Caesars Entertainment (NASDAQ: CZR) and Las Vegas Sands (NYSE: LVS) in revealing new buyback initiatives. The gaming firm’s buyback efforts in the third quarter were appropriately timed, happening at an average price of $80.37 — significantly lower than Monday’s closing price of $95.65. Wynn finished the September quarter with $1.34 billion in cash and $11.79 billion in debt. 

Las Vegas Also Impacted Wynn's Q3 Figures 

In earlier quarters of weak Macau data, Wynn managed to compensate for some of that downturn with its Las Vegas operations, but this was not true in the July to September timeframe. 

Over that period, Las Vegas revenue fell by $11.8 million to $607.2 million, with adjusted property EBITDAR decreasing to $202.7 million from $219.7 million the previous year. The win percentage for table games at the operator's two Las Vegas locations was 23.3%, a decrease from 26% in the same timeframe last year. 

This is yet another indication that Strip operators are facing challenging year-over-year comparisons — a concern that analysts have recently emphasized.