Station Casinos Guides Higher
Station Casinos
(STN) - Get Report
raised first-quarter earnings guidance Tuesday, citing the strong Las Vegas economy.
Station, whose Las Vegas casinos primarily appeal to local residents, said adjusted earnings for the quarter ending Mar. 31 will be 66 cents to 68 cents a share, exceeding its previous EPS guidance of 56 cents to 62 cents. On average, analysts surveyed by Thomson First Call expect adjusted EPS of 60 cents.
Station also said earnings before interest, taxes depreciation and amortization, or EBITDA, will come in between $117 million and $119 million in the first quarter. Previous guidance was for $107 million to $113 million.
"Our strategic decision several years ago to focus on the locals market in Las Vegas continues to drive shareholder value through our exceptional operating results and return on invested capital," said Glenn Christenson, the company's CFO.
Also Tuesday, Station said it would accelerate the second phase of the expansion of its Red Rock casino resort, with construction beginning late this year and completion expected by the end of 2006. The company expects initial construction on the resort to be complete by the first quarter of 2006.
Station shares finished Monday up 8 cents, or 0.1%, at $61.54.