NEW YORK (TheStreet) -- Shares of Wynn Resorts (WYNN) were dropping 9.58% to $87.27 on heavy trading volume late Thursday afternoon after the casino resorts operator posted lower-than-anticipated results for the 2016 third quarter.
Following yesterday's market close, Las Vegas-based Wynn reported adjusted earnings of 75 cents per share, below Wall Street's estimates of 78 cents per share.
Revenue of $1.11 billion fell short of analysts' projections of $1.12 billion. For the company's Wynn Macau operations in the Macau region of China, revenue slid 11.5% year-over-year to $518.1 million.
Deutsche Bank said today that "while the quarter wasn't wildly out of line with consensus, simply put, Palace opened and Wynn lost share sequentially in Macau, had lower sequential Macau EBITDA, experienced cannibalization at Peninsula, and backed off 2017 Macau EBITDA guidance."
Going forward, the firm said that both Wynn and its investors will focus intently on the company's new Wynn Palace resort in Macau, which opened in August. But Wynn faces risks amid tightening regulations in the region, Deutsche Bank said.
The firm also lowered its price target on the stock to $88 from $100 and kept a "hold" rating.
About 7.36 million shares have traded so far today, well above the 30-day average volume of 2.64 million shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.