Wynn Resorts reported revenue of $1.87 billion for the quarter ended December 2025, up 1.5% year over year. Earnings per share (EPS) were $1.17, down from $2.42 a year earlier. Revenue came in 0.67% above the Zacks Consensus Estimate of $1.85 billion. EPS was 12.17% below the consensus estimate of $1.33. Las Vegas table drop was $667.57 million versus an estimate of $671.2 million. Table games win was $173.84 million versus $161.94 million, and slot machine win was $129.52 million versus $131.97 million. Macau VIP table games win at Wynn Palace was $148.5 million versus $160.01 million. Wynn Macau operating revenue was $371.33 million versus $370 million, up 2.1% year over year, while Wynn Palace was $596.36 million versus $614.32 million, up 5.9%. Encore Boston Harbor operating revenue was $210.19 million versus $210.69 million, down 1.2% year over year. Las Vegas operating revenue was $688.11 million versus $667.42 million, down 1.6% year over year. Las Vegas casino revenue was $178.28 million versus $177.77 million, down 6.2%, while Encore Boston Harbor casino revenue was $152.02 million versus $156.78 million, down 3.1%. Las Vegas rooms revenue was $222.92 million versus $221.8 million, down 2.5%, and food and beverage was $191.71 million versus $182.13 million, up 3.8%. The biggest takeaway is the EPS miss. It suggests profit pressure even though revenue rose slightly. The -12.17% EPS surprise will likely outweigh the small revenue beat in the weeks ahead. We believe this could put downward pressure on the stock price. The U.S. business shows warning signs. Operating revenue fell year over year in both Las Vegas and Boston. This matches recent Las Vegas Convention and Visitors Authority data showing visitor growth stalled in the final quarter of 2025, ending a multi-year recovery trend. The drop in casino revenue is especially concerning for the core U.S. business. Macau delivered top-line growth, but the details suggest weaker momentum. Wynn Palace revenue missed estimates, and the VIP segment also fell short. VIP play is a key, high-margin driver. Adding to this, January 2026 data from Macau’s Gaming Inspection and Coordination Bureau showed city-wide gaming revenue rose only 4.5%. That missed the 6% consensus forecast, driven by a softer-than-expected start to the Lunar New Year holiday period. With profit pressure and softer trends in both the U.S. and Macau, we are positioning for downside, or at least limited upside. Derivative traders may want strategies that benefit if the stock falls, such as buying put options or using bear call spreads. These trades can also help hedge against a decline over the next several weeks. This setup looks similar to mid-2025, when another earnings report showed slowing growth and the stock fell more than 8% in two weeks. In addition, recent Federal Reserve comments point to slower U.S. discretionary spending through 2026. That adds a broader headwind and supports the risk that luxury and travel stocks like Wynn could lag.

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