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Casino Companies Anticipate Strong Results

LOS ANGELES – 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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