Ameristar Falling on Earnings Miss
(Ameristar article updated with analyst commentary.)
LAS VEGAS (
) --
Ameristar Casinos
(ASCA)
narrowed its loss in the fourth-quarter, but missed analysts expectations, sending stock sinking.
During the quarter, the casino operator recorded a loss of $63.3 million, or $1.10 a share, compared with a loss of $101.1 million, or $1.77, in the year-ago period.
Excluding items, Ameristar actually earned 11 cents a share, a penny short of Wall Street's expectations.
Revenue fell less than 1% to $291.3 million from $293.6 million last year.
Ameristar received a blow to its East Chicago casino during the quarter, when the Indiana Department of Transportation announced that it was permanently closing the Cline Avenue bridge near the property due to safety concerns.
"Closure of the bridge has significantly impacted the property's operating results, and we expect this to continue unless, and until, improved access to Ameristar East Chicago is developed," management said in a statement.
Shares of Ameristar are falling 3% to $15.79 in afternoon trading trading.
Still, J.P. Morgan analyst Joseph Greff says Ameristar's fourth-quarter results and outlook were expected. "Spending trends in Ameristar's regional markets, absent weather and bridge closures, continue to remain sluggish -- but no worse, no better than recent trends," he wrote in a note.
On Tuesday,
Melco Crown Entertainment
(MPEL)
said it
widened its loss in the fourth quarter
, also failing to meet expectations.
Penn National Gaming
(PENN) - Get Report
is set to report its earnings on Thursday.
-- Reported by Jeanine Poggi in New York.
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>>Melco Crown Widens Quarterly Loss
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