Shares of Wynn Resorts (WYNN) have dropped near their 52-week lows over concerns on a weakening Chinese economy, lower quarterly earnings and a sexual harassment lawsuit, reported CNBC.
China and Macau
Big casino operators have had a tough year as worries about a trade war and slowing Chinese economy, coupled with lackluster gaming results from Macau are driving concerns of a slowdown.
Meanwhile, earnings have been disappointing and some think estimates have to come down further. Wynn said it earned $1.68 on revenue of $1.71 billion, while analysts were looking for EPS of $1.71 on revenue of $1.67 billion.
Sexual Harassment Lawsuit
Former Chairman and CEO Steve Wynn has filed against the Massachusetts Gaming Commission to stop the public release of an investigative report involving alleged sexual misconduct. It was spurred by media reports that Wynn allegedly engaged in sexual misconduct with female employees when he was a company executive.
Wynn resigned as chairman and CEO of Wynn Resorts in February and the company renamed its casino from Wynn Boston Harbor to Encore Boston Harbor after sexual misconduct allegations surfaced against him.
Wynn has denied the allegations.