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LAS VEGAS-MGM Mirage Inc. said Thursday its third-quarter profit climbed 68%. After close of markets Wednesday, Las Vegas Sands Corp. reported a 21% increase in profit. Another locally based company, Station Casinos, on Thursday announced a 51% decline in profit.
Shares of MGM Mirage fell during morning trading on concerns about its fourth-quarter outlook but bounced back in the afternoon to close at $43.65, up $0.84 on the day. Las Vegas Sands, which reported lower than expected results from its Las Vegas properties, saw its share price fall $3.89 to $72.43. Shares of Station Casinos, which tempered its fourth-quarter outlook, fell $1.67 to $59.70. Most other casino operators on Thursday saw their share prices either fall slightly or make only slight gains.
MGM's net income rose to $156.3 million, or $0.54 per share, in the third quarter of 2006 from $93.2 million, or $0.31 per share, in the third quarter of 2005. Third quarter revenue increased 5% from one year ago to $1.90 billion. Analysts' average expectation was $0.41 per share on revenue of $1.83 billion.
While revenue from the Las Vegas Strip was up for MGM -- to $1.54 billion from $1.45 billion in the third quarter of 2005 –- it was down for Las Vegas Sands. Despite a 21% rise in net income to $97.3 million, or $0.27 cents per share, and a 26.5% rise in revenue to $553.2, casino revenue in Las Vegas slipped to $89.3 million from $94.3 million in the prior-year period.
Station Casinos' third quarter net income fell to $19.2 million, or $0.34 per share, from $38.9 million, or $0.56 per share, a year earlier. Revenue increased 25% to $345.96 million. Same-store sales fell 1%. Both revenue and profits missed analysts' consensus estimates, and the company also lowered its outlook for the fourth quarter and for 2007.
The news comes on the heels of a positive month for the share price of many publicly held gaming companies. The Applied Analysis Gaming Index, which tracks the daily average share price of nine public gaming companies with significant operations in Nevada, hit an all-time high in October. For more on the Index, click here.
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