Station Rides Vegas Wave

Revenue was $274 million in the latest quarter, up 14% from a year ago.
Author:
Publish date:

Earnings grew 40% at

Station Casinos

(STN) - Get Report

in the second quarter, as the company continued to benefit from the booming Las Vegas economy.

Station, whose casinos cater to the city's local residents, said net income grew to $40.6 million, or 58 cents a share, from $29.0 million, or 43 cents a share, a year earlier.

Excluding one-time items and development expenses, Station reported EPS of 65 cents, up from 52 cents a year before and a penny ahead of the 64-cent average analyst estimate from Thomson First Call.

Revenue totaled $274.0 million in the latest quarter, up 14% from a year ago and better than the $271.7 million analyst consensus. Revenue jumped 16% at Station's Las Vegas casinos that had been open at least a year.

Looking ahead, Station forecast third-quarter EPS of 51 cents to 56 cents, roughly in line with the 54-cent consensus estimate. The guidance assumes about $2 million of construction disruptions as Station expands its Santa Fe Station and Fiesta Henderson casinos. It also assumes revenue growth of 8% to 11% at Station's major Las Vegas casinos.

Shares of Station fell 88 cents, or 1.2%, to $71.80 in premarket trading Thursday. Investors, who've grown accustomed to blowout performances from Station, may have expected even better results or higher guidance.

Boyd Gaming

(BYD) - Get Report

, which also serves the local Las Vegas market, saw its shares dive Wednesday even though it reported second-quarter profits that were a penny better than estimates.