St. Louis, Missouri-based Isle of Capri Casinos and Wyomissing, Pennsylvania-based Penn National Gaming both recently reported outstanding quarterly results and stock price increases as a result. Both outperformed larger global casino operators.
Isle of Capri operates a racetrack in Pompano Beach, Florida and 15 casinos in the Midwest, South and East Coast. Officials said fiscal fourth-quarter
earnings jumped 71 percent to 58 cents a share, beating analysts’ estimates by 17 cents a share. Revenue grew 5.3 percent to $274.6 million, topping analysts’ expectations of $266.7 million. Shares increased 7.7 percent to $19.39 on the stock following the report and rose more than 20 percent in two days of trading; higher closes were expected to continue. The company’s stock has a 92 IBD Composite Rating , meaning it has outperformed 92 percent of all stocks in sales and profit growth.
Isle of Capri Casinos President and Chief Executive Officer Virginia McDowell said the company continues to invest in properties by renovating hotel rooms, restaurants and casinos. “We broke ground on our land-based development at Bettendorf, Iowa, which we expect to open in early fiscal 2017. We continue to optimize our marketing programs and are introducing new productivity tools in fiscal 2016 across the enterprise.”
In its quarterly report, Penn National Gaming, based in Wyomissing, Pennsylvania, also reported excellent results whereupon its stock rose 5 percent to $17.61. Penn National has an 87 Composite Rating.
Las Vegas Sands, the world’s largest casino operator, MGM Resorts International and Wynn Resorts depend on most of their growth from Macau, which generates annual gambling revenue about six times that of Las Vegas. But the island has been in a recession the past year due to stricter government regulations and shrinking economic growth in China. As a result, Sands and the other operators have experienced revenue declines.
