Melco Resorts & Entertainment (MLCO) Hits New 1-Year Low on Disappointing Earnings

Shares of Melco Resorts & Entertainment Limited (NASDAQ:MLCO) hit a new 52-week low on Thursday following a weaker than expected earnings announcement. The stock traded as low as $15.33 and last traded at $16.28, with a volume of 208739 shares. The stock had previously closed at $18.17.

The company reported $0.04 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.18). Melco Resorts & Entertainment had a net margin of 7.83% and a return on equity of 15.47%. The company had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.34 billion. During the same period in the prior year, the company earned $0.24 earnings per share. The company’s revenue for the quarter was down 11.4% on a year-over-year basis.

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 29th. Stockholders of record on Monday, November 19th will be issued a dividend of $0.1451 per share. This represents a $0.58 annualized dividend and a dividend yield of 3.72%. This is an increase from Melco Resorts & Entertainment’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Friday, November 16th. Melco Resorts & Entertainment’s dividend payout ratio is currently 61.96%.

Several equities research analysts recently issued reports on the company. Zacks Investment Research raised Melco Resorts & Entertainment from a “strong sell” rating to a “hold” rating in a research note on Thursday, July 26th. ValuEngine raised Melco Resorts & Entertainment from a “sell” rating to a “hold” rating in a research note on Wednesday, August 22nd. BidaskClub downgraded Melco Resorts & Entertainment from a “sell” rating to a “strong sell” rating in a research note on Tuesday, October 9th. TheStreet downgraded Melco Resorts & Entertainment from a “b-” rating to a “c+” rating in a research note on Tuesday, October 30th. Finally, Bank of America reissued a “buy” rating and issued a $35.10 price objective (up from $34.40) on shares of Melco Resorts & Entertainment in a research note on Tuesday, July 24th. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating and nine have issued a buy rating to the company. The stock has an average rating of “Buy” and an average target price of $32.73.

A number of hedge funds have recently modified their holdings of MLCO. Royal Bank of Canada increased its position in Melco Resorts & Entertainment by 172.0% in the 1st quarter. Royal Bank of Canada now owns 95,944 shares of the company’s stock worth $2,781,000 after purchasing an additional 229,282 shares during the last quarter. Principal Financial Group Inc. increased its position in Melco Resorts & Entertainment by 49.6% in the 1st quarter. Principal Financial Group Inc. now owns 1,350,597 shares of the company’s stock worth $39,140,000 after purchasing an additional 447,807 shares during the last quarter. DnB Asset Management AS acquired a new position in Melco Resorts & Entertainment in the 2nd quarter worth about $843,000. IFM Investors Pty Ltd increased its position in Melco Resorts & Entertainment by 38.4% in the 2nd quarter. IFM Investors Pty Ltd now owns 13,011 shares of the company’s stock worth $364,000 after purchasing an additional 3,610 shares during the last quarter. Finally, Handelsbanken Fonder AB increased its holdings in shares of Melco Resorts & Entertainment by 21.1% during the 2nd quarter. Handelsbanken Fonder AB now owns 230,000 shares of the company’s stock valued at $6,440,000 after acquiring an additional 40,000 shares during the last quarter. 39.38% of the stock is currently owned by institutional investors.

The company has a debt-to-equity ratio of 1.05, a current ratio of 1.04 and a quick ratio of 1.02. The firm has a market cap of $8.98 billion, a P/E ratio of 16.96, a PEG ratio of 1.53 and a beta of 1.64.

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About Melco Resorts & Entertainment (NASDAQ:MLCO)

Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has 500 gaming tables and 800 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 30 restaurants and bars, and 150 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities.

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