Analyst raises gaming estimates

Thursday, July 18, 2002 | 11:09 a.m.

Wall Street investment firm Bear, Stearns & Co. this week raised its second quarter earnings estimates for seven casino companies, citing a number of factors including cost control programs, effective marketing, strong regional markets and an improving outlook in Las Vegas.

"We expect second quarter earnings results for the majority of gaming companies in our coverage universe to exceed both our estimates and the current Street consensus estimates," Bear Stearns gaming analyst Jason Ader wrote in a research note.

Ader increased his earnings per share estimates for MGM MIRAGE from 49 to 53 cents and for competing Strip operator Park Place Entertainment Corp. from 16 to 17 cents.

Ader also raised estimates slightly for Las Vegas-based locals' casino operator Station Casinos Inc. and for Phoenix-based Aztar Corp., which owns the Tropicana hotel-casino in Las Vegas.

Estimates also increased for Las Vegas-based Ameristar Casinos Inc. and Alton, Ill.-based Argosy Gaming Co., which both operate casinos outside of Las Vegas.

Harrah's Entertainment Inc., which reported its earnings Wednesday, earned 75 cents per share before special items. Ader's estimate had increased from 70 to 74 cents per share.