Why MGM Resorts (MGM) Stock Is Falling Today

NEW YORK (TheStreet) -- MGM Resorts (MGM) was falling 3.9%to $24.43 Monday on news that early April revenue is down in Macau.

Based on channel checks by Wells Fargo average daily revenue at Macau casinos dropped between 17% and 21% to between MOP 900 million and MOP 950 million from MOP 1.14 billion in March. The lower revenue is likely a result of "inclement weather."

Wells Fargo now expects lower gaming revenue in Macau. Analyst Cameron McKnight wrote "Our Q2 Macau estimates are based on 15.5% yr/yr growth for April and Q2 market growth of 14.2%, down from 19.8% growth in Q1."

The lower revenue estimates also affected rivals Las Vegas Sands (LVS), Wynn Resorts (WYNN), and Melco Crown (MPEL).

Must read: Warren Buffett's 10 Favorite Growth Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates MGM RESORTS INTERNATIONAL as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate MGM RESORTS INTERNATIONAL (MGM) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

If you liked this article you might like

China's Golden Week Holiday Set to Unleash Gambling Explosion

Opposition Party Makes Political Gains in Macau, Changes in Governance Possible

Dow, S&P 500 and Nasdaq at New Records as Promise of Tax Reform Boosts Banks

Stocks Back at Highs as Apple Gains on iPhone 8, iPhone X Release

Tech in Wait-and-See Mode Ahead of Apple Event, Financials Rise on Tax Talk