Updated from 9:37 a.m. EDTStation Casinos ( STN) shares dropped 5% Tuesday after the casino operator missed analyst estimates for its second-quarter profit and cut its earnings guidance for next year. But despite recent investor concerns, the company denied that its results are indicative of a slowdown at its Las Vegas casinos, which cater to the local populace. Station earned $26.8 million, or 44 cents a share, in the latest quarter, compared with $40.6 million, or 58 cents a share, a year ago. On an adjusted basis, the company earned 61 cents per share, down from 66 cents a year earlier. Analysts, on average, expected an adjusted profit of 63 cents a share, according to Thomson First Call. These results exclude nonrecurring items and development expenses, which analysts had also factored out in their guidance. Station slightly missed the top-line estimate, with revenue of $341.79 million, up from $273.97 million a year earlier. Analysts expected $342.57 million. Station shares fell $2.90 in afternoon trading to $57. Later on Tuesday, Boyd Gaming ( BYD), the other dominant player in the Las Vegas locals market, will report earnings. Investors have recently punished Station's stock and that of Boyd Gaming on fears that Station's new Red Rock Casino is creating a very competitive operating market in the Las Vegas locals market. On its conference call, Station management said the company's revenue miss didn't signal a weak operating environment, but it was simply a matter of not hitting its best attempt at providing estimates. With regards to recent investor fears of a slowing consumer in Vegas, management said, "We recognize there are some issues that the Street has been concerned about, but so far we haven't seen those concerns manifest in our operations." As well, margins were huty in the quarter by increased costs at Red Rock Casino, which opened in April. Operating costs tend to be higher when a new casino opens but drop over time, the company noted.