The gaming exchange traded fund fell Thursday after holding Wynn Resorts (NasdaqGS: WYNN) reported third quarter profit that fell short of analysts’ expectations.
Market Vectors Gaming ETF (NYSEArca: BJK) was down 1.5% at last check Thursday and Wynn shares lost over 4%. Some investors were disappointed the company didn’t announce a special dividend, Bloomberg reported.
Late Wednesday, Wynn Resorts revealed that it had turned a year-ago loss into a third-quarter profit, but the results still fell below expectations, WSJ.com reports.
“Wynn is transitioning from a consistent ‘beat-and-raise’ growth story to a less visible share story in Macau,” Morgan Stanley analysts said. “As competitive supply continues to open on Cotai and capacity constraints at its existing property limit same-store growth, we expect WYNN to lag the overall Macau market.”
“We believe two key developments could leave investors feeling unfulfilled coming out of the quarter, most notably the board’s decision to forgo the issuance of a special dividend and management’s limited commentary pertaining to the status of its planned Cotai development,” analyst Stifel Nicolaus said in the WSJ.com report.