Shares of Wynn Resorts Ltd. (WYNN) - Get Report plunged nearly 12% to $100.49 on Thursday, Nov. 8, after the casino operator reported worse-than-expected quarterly results and said it was seeing a "slowdown" at its high-end Macau location - an important barometer of the company's future earnings.
The hotel and casino company reported adjusted earnings of $1.68 a share, while analysts expected $1.69. While the company did post better-than-expected revenue of $1.71 billion vs. estimates of $1.66 billion, post-earnings comments from CEO Matthew Maddox of a "slowdown" in the company's Macau business sent the stock tumbling.
"So what we've seen post-Golden Week has been a slowdown. And we've seen it, in particular, in the premium end of the business, premium mass, premium slots, and VIP," Maddox said during the company's earnings call on Wednesday, CNBC reported.
Analyst stock-target downgrades also pushed shares lower; Roth Capital analyst David Bain lowered his price target for Wynn to $140 from $210 on expectations of lower fourth-quarter earnings and additional downside risks related to China's slowing economy.