Wynn Resorts Ltd. (NASDAQ:WYNN) stock was up 1.18% at the bottom of the noon hour on June 11. Shares of Wynn Resorts have dropped 11.6% over the past month. The company has faced complications in the wake of a sexual harassment controversy that surrounded its founder Steve Wynn.
Wynn resigned as CEO after the sexual misconduct claims came to light in January. An internal battle seemed to come to a close in mid-May when two board members announced their withdrawal. Elaine Wynn, the ex-wife of Steve Wynn and co-founder, has emerged from the chaos as the top figure.
The company released its first-quarter results back on April 24. Operating revenues rose 20.5% year-over-year to $1.72 billion. However, Wynn Resorts ultimately posted a net loss of $204.3 million largely due to a $463.6 million litigation expense. The company reported cash and cash equivalents of $2.16 billion as of March 31, 2018.
A number of Las Vegas resorts, including Wynn Resorts, have been threatened by an ongoing labour dispute with key support staff. Union members reached a tentative deal with MGM Resorts International (NYSE:MGM), but there are still striking members that are seeking a new CBA. The clash has revolved around the push for automation at Las Vegas resorts which threatens the long-term job security of union members.
Wynn Resorts stock boasts a cash dividend of $0.75 per share representing a 1.2% dividend yield. The company should continue to see a boost from tax reform and a typically busy summer season in Vegas. With Elaine Wynn now firmly in control the company will be looking to stabilize for the remainder of this fiscal year.
