NEW YORK (TheStreet) -- Shares of Wynn Resorts, Limited (WYNN - Get Report) are lower by 2.52% to $182.36 this morning after news that Macau September casino gaming revenue is expected to have plunged 13% from a year ago, Bloomberg reported.
The fall in gaming revenue in September would mark four straight months of declines in Macau, the only region in China where casinos are legal.
Visa restrictions and the crackdown on the use of UnionPay debit cards to transfer money from China have kept away high rollers, who accounted for 60% of the city's gaming revenue, Bloomberg added.
Other casino gaming companies are down today including Las Vegas Sands (LVS - Get Report) lower by 1.78% to $61.10, Melco Crown Entertainment (MPEL) sinking 3.23% to $25.45 and MGM Resorts International (MGM - Get Report) falling 2.24% to $22.27.
Separately, 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 notable return on equity, revenue growth, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. 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:
- Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, WYNN RESORTS LTD's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- WYNN RESORTS LTD reported significant earnings per share improvement 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 ($8.44 versus $7.17).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 57.1% when compared to the same quarter one year prior, rising from $129.79 million to $203.91 million.
- You can view the full analysis from the report here: WYNN Ratings Report