Investing.com -- Shares in Wynn Resorts Limited (NASDAQ:WYNN) fell sharply in after-hours even after the casino topped analysts' quarterly revenue and earnings forecasts, driven by unexpected gains from its beleaguered Macau resort over the previous quarter.
During the second quarter of Fiscal Year 2016, Wynn Resorts reported earnings of $70.4 million or 0.69 per share, up considerably from net profits of $56.5 million over the same period a year earlier. At the same time, Wynn Resorts saw its net revenues inch up to $1.06 billion amid a rare positive quarter from operations in Macau. For the three-month period, revenues at the Chinese resort surged 3.6% to $639.3 million, despite declines in table game turnover at its VIP segment and slot machine handle. On an adjusted earnings per share basis, excluding one-time items, Wynn reported EPS of 1.07, significantly above expectations of 0.91. The international casino and resort also topped analysts' net revenue forecasts of $1.02 billion.
Nevertheless, Wall Street analysts responded tepidly to the resort's near-term outlook after CEO Steve Wynn suggested that Chinese regulatory authorities will limit the company to 100 tables at its new Wynn Palace resort that is scheduled to open in Cotai on August 22. Initially, Wynn Resorts projected that Chinese authorities would approve a range of 150-200 tables. The limits could force the casino to move a handful of tables from Macau over to the new resort.
In addition, the company said revenues from its Las Vegas operation last quarter fell 1.1% to $423.5 million. Addressing reporters at a conference call on Thursday afternoon, Wynn bemoaned the low profitability of table games at casinos throughout the U.S. The company is considering incremental improvements to increase the odds for the house at various table games, Wynn added.
Wynn Resorts also announced on Thursday that the company's Board of Directors has authorized a cash dividend of $0.50 per share, payable on Aug. 23 to stockholders of record as of Aug. 11.
Shares in Wynn Resorts plunged 6.66 or 6.36% to 98.00 in after-hours.