Wynn Resorts
stock was diving Friday as markets digested the company’s latest earnings. But on the upside, the casino operator has reached a deal with Las Vegas Strip workers before a key Friday deadline.
The Culinary Workers and Bartenders Union said it had reached a tentative agreement with Wynn (ticker: WYNN), covering 5,000 employees. It includes the biggest wage increases ever negotiated in the union’s 88-year history, it said in a news release.
Rivals
MGM Resorts
(MGM) and
Caesars Entertainment
(CZR) already have announced agreements with workers. The Wynn deal came just hours before a 5 a.m. deadline that could have initiated a strike.
After the close Thursday,
Wynn Resorts
posted earnings that beat expectations, but its
Wynn Macau
unit’s results disappointed investors who had hoped for a stronger recovery.
In recent Friday trading, Wynn Resorts shares were down 9.5% to $82.03—the biggest one-day percent drop in more than a year. Wynn Macau shares closed down 13% in Hong Kong.
MGM Resorts
said Thursday it had reached an agreement with the Culinary and Bartenders unions, which covers about 25,000 workers.
Caesars Entertainment
reached a tentative deal with labor unions on Wednesday.
After Thursday’s earnings, analysts at Jefferies led by David Katz lowered their price target for Wynn stock to $91 from $104. They said the company’s performance in Las Vegas was solid, but new projects and slow recovery in Macau were headwinds.
Analysts at Stifel and Deutsche Bank both argued for buying Wynn shares on weakness after Thursday’s earnings.
Write to Brian Swint at [email protected]
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