Casino
Companies Anticipate Strong Results
As reported by Reuters:
"U.S. casino operators are likely to post
robust quarterly earnings despite Gulf Coast
hurricane damage and concerns over flagging
consumer demand that have pressured the companies'
stocks. .
"Investors
are also concerned about the industry's outlook
because high gasoline prices and rising interest
rates have cut into disposable income consumers
could use to gamble.
"But the big companies have their core
operations far from the hurricanes' devastation,
and tourism data suggest that the gambling centers
of Las Vegas and Atlantic City may be doing
better despite weak consumer confidence.
"…Shares of Harrah's Entertainment
Inc. (HET.N), the world's largest gambling company,
have fallen about 24 percent since early August,
while shares of No. 2 casino operator MGM Mirage
(MGM.N) are down 17 percent since late July.
"…Third quarter adjusted earnings
per share at MGM, which acquired Mandalay Resorts
in April and relies on Las Vegas for about 85
percent of its profit, are expected to rise
about 47 percent, according to Reuters Estimates…"
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