NEW YORK (TheStreet) -- Shares of Wynn Resorts (WYNN) were down 4.9% to $103.79 on Monday following a note from analyst firm Sterne Agee that suggests gaming revenue in Macau is falling in June so far.
In a note to investors, Sterne Agee CRT analyst David Bain said, "According to our channel checks, Macau table-only gross gaming revenue ("GGR") is MOP3.3 billion (USD$410m) from June 1 to June 7." The June run rate suggests that GGR will fall 46% year over year in June to MOP14.6 billion ($1.8 billion).
"Our June GGR growth forecast range of between -33% and -38% YoY remains unchanged," Bain wrote. "Given abnormal market share and other checks, we believe hold negatively impacted early June results. Still, results are disappointing especially given a two week proximity to the opening of Galaxy's Phase 2."
The analyst note helped bring down shares of casinos with a presence in Macau such as Wynn.
About 1.2 million shares of Wynn were traded by 10:06 a.m. Monday, compared to the company's average trading volume of about 2.7 million shares a day.
TheStreet Ratings team rates WYNN RESORTS LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate WYNN RESORTS LTD (WYNN) 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. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share."