NEW YORK—Shares of Wynn Resorts Ltd. jumped at market open Friday after the casino resort operator said it expects sharply higher operating profit at its Macau property and announced a boost to its buyback program.
Shares rose $7.09, or 10.1 percent, to $77.03 in morning trading.
Late Wednesday, the Las Vegas-based company predicted operating income at its Macau property would range between $100 million to $106 million, compared with $53.2 million last year. However, the company said it expects lower operating profit at its Las Vegas property.
In addition, Wynn said its board approved an increase of up to $500 million to its previously announced $1.2 billion stock repurchase program.
In a client note, Jefferies & Co. analyst Lawrence Klatzkin said the outlook makes him "even more confident about Wynn going forward," adding that the guidance at both its Las Vegas and Macau destinations beat his estimates.
He maintained his "Buy" rating and $138 price target on shares of Wynn.
Meanwhile, Oppenheimer's David Katz was more subdued, saying uncertainty in the Las Vegas market warrants a more cautious stance on Wynn.
"Although management's indications of confidence in the stock near term and the strong Macau results are encouraging, we believe the market remains broadly conservative on casino stocks," he wrote in a client note.
Katz reiterated a "Perform" rating on Wynn.
Shares of Wynn have declined more than 60 percent from a 52-week high of $176.14 in October.
