The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ameristar Casinos met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew significantly.
Gross margins expanded, operating margins shrank, net margins dropped.
Ameristar Casinos tallied revenue of $296.2 million. The 12 analysts polled by S&P Capital IQ expected revenue of $296.7 million. Sales were 0.7% higher than the prior-year quarter's $294.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.21. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.34 per share on the same basis. GAAP EPS of $0.22 for Q4 were 16% higher than the prior-year quarter's $0.19 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 48.7%, 310 basis points better than the prior-year quarter. Operating margin was 15.0%, 40 basis points worse than the prior-year quarter. Net margin was 2.5%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $308.2 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $1.21 billion. The average EPS estimate is $2.30.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 194 members rating the stock outperform and 54 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Ameristar Casinos a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ameristar Casinos is outperform, with an average price target of $24.15.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Ameristar Casinos. Learn how to maximize your investment income and "Secure Your Future With 11 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Ameristar Casinos to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.