Melco Crown Entertainment (MLCO) saw its stock plummet 7.33% in Thursday's trading session on disappointing fourth quarter earnings results. The casino operator reported an adjusted net loss of $0.005 per share for Q4 2024, widely missing analyst expectations of $0.06 earnings per share.

Despite the earnings miss, Melco's Q4 revenue of $1.19 billion managed to beat the consensus estimate of $1.18 billion. The company attributed the revenue increase to improved performance across all its gaming segments and non-gaming operations.

However, investors appeared to focus more on the bottom-line disappointment. While the revenue beat points to improving business conditions, the adjusted net loss raises concerns about Melco's ability to control costs and drive profitability.

In the earnings release, Melco also revealed that it is considering potential strategic alternatives for its City of Dreams Manila property in the Philippines. This announcement likely added to investor concerns, as any major changes to the company's operating structure could introduce uncertainty.

Looking ahead, analysts will closely monitor Melco's progress in turning around its profitability and gaining operational efficiencies. The company's ability to execute on its strategic initiatives and capitalize on the recovery in the gaming industry will be crucial in determining its future stock performance.