Before the market open, the Hong Kong-based casino operator reported revenue that rose 17% year-over-year to $1.07 billion but fell short of analysts' projections of $1.09 billion.
Diluted earnings of 6 cents per ADS met analysts' estimates.
"Macau continues to face challenges in gaming demand," CEO Lawrence Ho said in a statement.
"However, we believe that revenue trends, particularly in the mass market segments, will improve as Macau further evolves in to a multi-faceted, mass market-focused destination, deserving the accolade of being the most exciting gaming and entertainment destination in Asia," Ho added.
He noted that Melco is "well positioned" to handle the Macau trends given its non-gaming, mass market-focused amenities.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Melco's strengths such as its revenue growth are countered by weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: MPEL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.