Encore suffers brutal 1st quarter earnings

Wynn Resorts undaunted, feels profits will rebound

By JOSH RESNEK

When the stock market closed Monday afternoon, officials of Wynn Resorts released the company’s first-quarter earnings report.

It wasn’t pretty.

But then, it wasn’t meant to be pretty.

For the fourth consecutive quarter, Wynn reported deplorable earnings, mainly the result of the COVID-19 pandemic, and the impossible business situation the casino and hotel world was thrown into and which it hasn’t yet come out of.

The resiliency of casino stocks is famous during hard times.

Investors and analysts know this: very few businesses can generate money and profits like casinos and their hotels when they are operating at full capacity.

Stock analysts and traders understood this and compensated for it.

Unbelievably, Wynn stock went up in anticipation of earnings being reported but ended down slightly at the end of the trading day. It closed Monday not too far away from its 52-week high of $143.88, proving that bad earnings don’t necessarily mean very much to investors trading on the NASDAQ exchange.

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