Dow Jones Newswires: Wynn Macau shares fall after reporting third-quarter loss


Shares of Hong Kong-listed casino company Wynn Macau 1128, -1.75% fell in early Asian trade Thursday after the company reported a third-quarter loss and as COVID-19 cases continue to rise in China.

The casino operator’s shares fell as much as 7.0% to 3.71 Hong Kong dollars (US$0.47) in early trade and were last 2.5% lower at HK$3.89.

In its earnings release, Wynn Macau reported that its net loss widened to US$242.0 million in the third quarter, compared with a loss of US$179.9 million a year ago.

The casino operator’s third-quarter earnings were hurt by a suspension of its casino operations for a 12-day period in July in response to a COVID-19 outbreak in Macau, the company said in its earnings release Thursday.

The casino operator’s future revenue growth will likely continue to be influenced by quarantine and zero-COVID policies in China and their impact on inbound travel, wrote Jefferies analyst Andrew Lee in a note.

The analyst added that it is “still a waiting game for eventual recovery” for Wynn Macau, although “the fear of lockdown is still deterring travelers.” The U.S. investment bank has a hold rating and target price of HK$4.50 on the stock.

There could be a looming risk of further COVID-19 restrictions in China as cases continue to climb in the city of Guangzhou, which is the country’s fourth largest city by urban population, said Nomura analysts in a note.

Investors should “closely monitor COVID development and lockdown measures in Guangzhou due both to its sheer size and the implications for China’s zero-COVID policies,” the analysts added. So far, multiple districts in the city have been locked down, and several flights from the city have been cancelled, Nomura said.

This article was originally published by Read the original article here.

Previous articleU.S. stocks move lower even with midterms likely to produce Washington gridlock
Next article: RingCentral stock soars after layoffs, earnings beat


Please enter your comment!
Please enter your name here