Ameristar stock off 18 percent on warning

Monday, Oct. 21, 2002 | 11:09 a.m.

SUN STAFF AND WIRE REPORTS

The stock of Ameristar Casinos Inc. of Las Vegas sunk this morning after it warned that it won't meet analysts' estimates for the third quarter, blaming lower-than-expected operating margins at its new St. Charles, Mo., property, which opened Aug. 6.

Despite the problems at St. Charles, Ameristar unveiled plans to invest $30 million to renovate and enhance its Kansas City casino.

The company expects to earn 43 cents a share in the third quarter, excluding charges, which were mainly pre-opening expenses for the St. Charles facility. Including those expenses, Ameristar expects to earn 29 cents a share.

Analysts surveyed by Thomson Financial/First Call expect the company to earn 51 cents a share. In last year's third quarter, Ameristar earned 49 cents a share.

The company's shares, which trade on the Nasdaq Stock Market, were halted for news dissemination at $14.74 today. After trading resumed this morning, the shares fell 18 percent to $12.09.

On Friday the company's stock dropped to a 52-week low of $14.45.

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