Wynn Resorts (WYNN 1.38%) delivered an all-time earnings record for its Las Vegas resorts in Q1, despite a macro environment of high inflation, rising interest rates, and bank failures. Based on Wynn's Q1 results and company outlook, here's why I think this casino stock is one to watch. 

Record EBITDA in Vegas

Wynn Resorts collected a record $232 million in adjusted property earnings before interest, taxes, depreciation, and amortization (EBITDA) at its Las Vegas hotels last quarter. Bolstered by "a consumer that continues to feel flush," Wynn CEO Craig Billings sounded enthusiastic about his company's future during the first-quarter earnings call last month.

Hotel occupancy in Vegas reached 89% in Q1, an 1190-basis-point increase over last year and 620 basis points higher than Q1 2019 occupancy. Revenue at Wynn Las Vegas finished at $587 million thanks to better-than-expected hold, or casino gains earned from active players.

Wynn's non-gaming Vegas businesses, including entertainment, retail, and dining, also enjoyed strength last quarter. According to CFO Julie Cameron-Doe, these segments "were up nicely year over year and also well above pre-pandemic levels."

Wynn's combined properties, which include two resorts in the recently reopened Macao region of China, generated $1.4 billion in revenue in the first quarter. And after a three-year hiatus, Billings announced the resumption of Wynn's quarterly dividend payments to investors -- starting at $0.25 per share. 

Macao was still unprofitable in Q1 

While Vegas flourishes, Wynn's Macao resorts struggled with "lower-than-normal VIP hold," as Billings called it, dropping EBITDA by an estimated $10 million during the quarter. However, he also explained that portions of Wynn's Macao casinos were closed for renovation during the period, and said he was actually encouraged by the segment's ability to match 2019's market share.

Billings described the Macao casino market as "structurally different than it was in 2019." Having endured a longer shutdown than in North America, Macao has also recently observed a shift away from junket business (high-roller, VIP-type gambling) and toward mass-market operations. 

Considering that both of Wynn's Macao properties produced EBITDA losses last quarter, a strong recovery in Macao is essential for improving overall profitability. Regarding the Macao region, Billings noted that "the market is coming back much more quickly than anybody would have thought of certainly six, nine months ago. It's incredibly good to see."

What's ahead for Wynn Resorts?

After announcing the company's return to a regular quarterly dividend payment, Billings boasted of Macao "returning to profitability" and Wynn's North American properties continuing "to perform well above historical levels." 

Billings also highlighted "a number of growth projects in flight" that -- while contributing to operating expenses in the near term -- "will ultimately add meaningful EBITDA to our business."

Amid better-than-ever performance in Las Vegas, Wynn Resorts stock trades more than 58% below its all-time high -- from March 2014, keep in mind. I think recent progress will translate into recovery for the stock. For these reasons, Wynn Resorts stock is worth adding to your watchlist and could pleasantly surprise investors in the quarters and years ahead.