Ameristar Posts Profit Gain, Shares Shine

LAS VEGAS (TheStreet) -- Ameristar Casinos(ASCA Quote) posted a profit gain in third-quarter earnings, as it benefited from cost cuts and a lower tax rate.

During the quarter, the casino operator earned $14.5 million, or 25 cents a share, compared with $14.3 million, or 25 cents, in the year-ago period.

Excluding one-time items, Ameristar actually earned 27 cents a share, in-line with analysts' estimates.

Revenue sank 7% to $299.4 million, missing Wall Street's forecast of $316.7 million. But room revenue was a bright spot, up 1% to $16.6 million from $15.9 million. Most casinos have been struggling with declining room revenue.

Another positive was the commentary management gave on the earnings call this morning about its newest hotel Black Hawk, saying they are seeing early success with the operation.

Shares of Ameristar, which operates casinos in seven markets, are jumping 3.6% to $15.92 in afternoon trading.

Last week, larger rivals Wynn Resorts(WYNN Quote) and Boyd Gaming(BYD Quote) reported double-digit profit declines and slumping revenue, while Las Vegas Sands(LVS Quote) widened its quarterly loss.

-- Reported by Jeanine Poggi in New York

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