Stock falls on Beau Rivage comments

Thursday, May 20, 1999 | 1:40 a.m.

Shares of Mirage Resorts Inc. of Las Vegas fell 7 percent Wednesday on expectations that profits won't grow as quickly as hoped at its Beau Rivage casino resort in Mississippi.

Mirage fell $1.63 to $21.13 in trading of 4.9 million, more than double its three-month daily average of 1.7 million.

The Las Vegas-based company is having trouble filling hotel rooms during the slow mid-week period at its new resort in Biloxi, Mississippi, BancBoston Robertson Stephens analyst Harry Curtis wrote in a report. Its operating costs are also running higher than normal, he added. The $680 million Beau Rivage, designed by Mirage Chairman Steve Wynn, opened in March.

"We had all thought the demand would be so strong that it would grow the (Mississippi coast) market," said Curtis, who rates Mirage shares "market perform." "It takes time to expand the market."

Curtis cut his estimate of Mirage's second-quarter profit to 23 cents a share from 25 cents. He cut his estimate of Mirage's profit for the year to 97 cents from $1.05.