NEW YORK (TheStreet) -- Melco Crown Entertainment (MPEL) fell Thursday after the company reported second-quarter results that missed analysts' expectations and announced prosecutors had indicted its Taiwan office.
The company's net income declined 20% year-over-year to $143.6 million, or 26 cents a share, from $181 million, or 33 cents a share. Revenue fell 7% year-over-year to $1.2 billion from $1.3 billion. Analysts had expected earnings of 36 cents a share on revenue of $1.3 billion.
Total Macau gaming revenue also declined 3.6% in July.
Furthermore, Melco announced Taipei prosecutors had indicted the company's Taiwan office and some of its employees for alleged violations of banking and foreign exchange laws.
The stock was down 3.85% to $28.86 at 11:20 a.m. More than 5.8 million shares had changed hands, compared to the average volume of 3,956,930.
Separately, TheStreet Ratings team rates MELCO CROWN ENTMT LTD as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MELCO CROWN ENTMT LTD (MPEL) a BUY. This is driven by multiple 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 robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."