Shares of casino operator Wynn Resorts, Ltd. (NASDAQ:WYNN) fell as much as 14.7% in trading Thursday after the company reported third-quarter 2018 results. At 12:50 p.m. EST, shares were still trading 12.5% lower on the day.
Revenue rose 10.2% to $1.71 billion in the quarter, topping estimates of $1.66 billion from analysts. Net income on a non-GAAP (generally accepted accounting principles) basis was $182.3 million, or $1.68 per share, falling short of estimates by a penny.
Earnings weren't terrible, but investors were focused on CEO Matt Maddox's comments that the high-end of Macau's gaming market was in a "slowdown." Macau is where a vast majority of Wynn's earnings come from, so a slowdown there could take a big bite out of results in coming quarters.
A slowdown in Macau wouldn't be good for investors, but it's important to keep in mind that this is still a highly profitable market for Wynn. Growth goes up and down periodically, and after a couple of strong years it isn't surprising to see the market slow down a bit. But that slowdown is enough to send a stock like Wynn lower today.