Tuesday, Jan. 18, 2005 | 10:37 a.m.
Caesars Entertainment Inc. said it would earn three cents per share more in the fourth quarter because of better than expected results in Atlantic City and Las Vegas.
In a statement today, Caesars said it expects to earn a profit of 7 cents to 9 cents per share as compared with previous estimates of 4 cents to 6 cents.
Those earnings exclude certain one-time items the company didn't disclose.
In a research note to investors, Bear, Stearns & Co. analyst Joe Greff said the announcement is "clear evidence that Las Vegas visitor volumes, convention volumes and room rates remain robust -- even in the traditionally slow" fourth quarter.
The results bode well for Harrah's Entertainment Inc.'s acquisition of Caesars as well as for MGM Mirage, which is buying out Mandalay Resort Group, and Wynn Resorts Ltd.'s upcoming resort, Greff said.
The company expects to complete by summer a multimillion dollar renovation project at Caesars Palace that has included building the Colosseum theater, a casino expansion, a bar and nightclub and an outdoor Roman Plaza with an amphitheater and retail area. Caesars is also the backdrop for a new reality show on the A&E network profiling the raucous goings-on at the resort.
Caesars shares rose 14 cents to $19.77 per share.
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