Jefferies & Company analyst, David Katz suggests that the casinos along the Gulf Coast are still behind other markets. Therefore, it’s suggested that the casinos reports mixed results during their upcoming reports of revenue.
Katz thinks that Penn National Gaming Inc.’s Hollywood Casino will show a 12.2% decline in their fourth-quarter profits at $27.9 million. A 10.6% profit decline at $31.8 million should be posted for Pinnacle Entertainment Inc.’s, Boom town.
Then, Boyd’s Gaming Corp.’s Treasure Chest casino needs to show a 10% decline of profits at $20.6 million. All three of these casinos are located in the Baton Rouge and New Orleans area. This is due to people are showing less interest in casino games now a days.
Along with this, Katz predicts revenue will decline 1.5% at Boyd Gaming’s Delta Downs, but will increase 4.6% at Pinnacle’s Boom town Bossier City, as well as increase 7.4% at Boyd Gaming’s Sam’s Town location.
Along with Louisiana, Katz says that casinos in Mississippi should also see revenue declines for the quarter. In fact, he predicts a revenue decline of 14.9% for Penn National’s Hollywood Casino Bay. However, a revenue increase of 3.4% should be seen at Boom town Biloxi.
Katz also predicts there will be a decline in the quarterly revenue of 1.5% at Beau Rivage, which is an MGM Resort. The Goldstrike Tunica property will likely see a growth of 1.7%.
On Monday, Isle Capri Casino shares went up 29 cents, which is equal to 3.4%. They are now at $8.81. Shares at Pinnacle Entertainment added 31 cents, which brings them to $13.57. Penn National Gaming Inc., MGM Resorts International, and Boyd Gaming Corp. all rose to only less than two percent.