NEW YORK (TheStreet) -- Wynn Resorts (WYNN - Get Report) shares are down -3.2% to $198.50 on Monday following disappointing June revenue news from Macau.
The Macau gaming region is off 6% from its weekly average during the first week of June according to analysts at Wells Fargo (WFC - Get Report).
June would be the second straight month of disappointing revenue as the Chinese gambling destination saw May revenue rise 9.4% from the same month a year ago, falling short of analysts estimates by 5 points.
TheStreet Ratings team rates WYNN RESORTS LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WYNN RESORTS LTD (WYNN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 9.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 53.87% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WYNN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- WYNN RESORTS LTD has improved earnings per share by 11.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WYNN RESORTS LTD increased its bottom line by earning $7.17 versus $4.81 in the prior year. This year, the market expects an improvement in earnings ($8.97 versus $7.17).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income increased by 11.8% when compared to the same quarter one year prior, going from $202.96 million to $226.90 million.
- 37.99% is the gross profit margin for WYNN RESORTS LTD which we consider to be strong. Regardless of WYNN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WYNN's net profit margin of 14.99% compares favorably to the industry average.
- You can view the full analysis from the report here: WYNN Ratings Report