New book by Larry Connors Click here Improve your trading - See how
The Las Vegas-based company said Wednesday it earned $14.5 million in the quarter that ended Sept. 30, which translated into 25 cents a share. A year ago, the company reported net income of $14.3 million, also 25 cents per share. The earnings per share figure met the forecast of analysts polled by Thomson Reuters, Companywide revenue was $299.4 million in the quarter, a 6.8 percent decline compared with $321.4 million a year ago.
Ameristar said a bright spot was the company's Ameristar Black Hawk in Colorado. Revenues grew 24.2 percent ahead of October's opening of a 536-room hotel tower and casino expansion. Company executives said the Black Hawk casino, located about 40 miles outside Denver, benefited from a liberalization of Colorado's gaming laws.
However, poor results at the company's casinos in Vicksburg, Miss., and East Chicago, Ind., offset the performance in Black Hawk.
"Ameristar's third-quarter results reflect the mixed regional market trends and are likely not that surprising given that several other regional operators have already reported (earnings)," Goldman Sachs gaming analyst Steven Kent told investors.
Ameristar Chief Executive Officer Gordon Kanofsky said the company's casinos in Missouri also benefitted from loosened gaming regulatory changes implemented late last year.
"In the third quarter, Ameristar once again demonstrated its ability to produce solid financial results during challenging economic conditions," Kanofsky said.
Throughout the year, casino operators have told investors gamblers pulled back on their spending during the recession. Many of the companies reduced costs.
During the quarter, Ameristar cut operating expenses to $248.5 million from $275.2 million. The company trimmed operating expenses related to casinos, food and beverage and rooms.
"Over the last 12 months, we have substantially reduced operating costs and believe we can sustain these savings," Kanofsky said.
Oppenheimer gaming analyst David Katz said Ameristar needs to shore up its efforts in some of the seven markets where it operates.
"We believe the key challenge for the company will be to solidify the performance across the entire portfolio despite beneficial regulations in some markets and competitive pressures in others," Katz said.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
To see more of the Las Vegas Review-Journal, or to subscribe to the newspaper, go to http://www.lvrj.com. Copyright (c) 2009, Las Vegas Review-Journal Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
