The owner and operator of destination casino resorts is losing customers, as Macau gaming revenue fell worse than expected, analysts said.
"According to the Gaming Inspection and Coordination Bureau (DICJ), Macau gaming revenue fell 23% year-over-year to MOP 28 billion in October, worse than the expected 21% drop," analysts said, adding, "By segment, we estimate VIP may have fallen 33-35% while mass could be flat or even dropped slightly year-over-year."
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"We believe the new smoking ban rule has diverted some premium mass players to low margin VIP rooms where smoking is allowed, hurting margin," analysts added.
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 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 increase in stock price during the past year, growth in earnings per share, expanding profit margins and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."