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Isle of Capri Casinos (ISLE) Q2 Earnings, Revenues Miss

Zacks

Isle of Capri Casinos, Inc. ISLE reported lower-than-expected results in the second quarter of fiscal 2017. Both earnings and revenues lagged the Zacks Consensus Estimate in the quarter.

Adjusted earnings per share (EPS) of 13 cents missed the Zacks Consensus Estimate of 20 cents by 35% and decreased 7.1% year over year due to lower revenues and profits.

Quarterly net revenues of $198.6 million came in below the Zacks Consensus Estimate of $210 million by 5.4% and were down 0.9% year over year.

On a consolidated basis, adjusted EBITDA dipped 0.9% year over year to $42.9 million owing to lower revenues.

ISLE OF CAPRI Price, Consensus and EPS Surprise


ISLE OF CAPRI Price, Consensus and EPS Surprise | ISLE OF CAPRI Quote

Black Hawk

Net revenue was $31.7 million, down 5.7% year over year. Adjusted EBITDA was $9 million in the fiscal second quarter, representing a 9.7% year-over-year decrease at the company’s two casinos in Black Hawk. Notably, the property was affected by the shutting of the buffet for renovation during the quarter as well as stiff competition.

Pompano

Net revenue was $37.5 million, down 2.7% year over year. Pompano Park generated adjusted EBITDA of $6.6 million in the quarter, down 9.1% on a year-over-year basis. The brief closure due to Hurricane Matthew was a major factor that impacted operating results during the quarter.

Iowa

Net revenue at Iowa properties was nearly $42 million, up 4.8% year over year. Adjusted EBITDA of $12.9 million grew 12.8% year over year.

The company operates two properties at Iowa – Bettendorf and Waterloo.

The fiscal second quarter marked the first full quarter of operations at the company’s new land-based facility in Bettendorf.

While net revenues increased at the Bettendorf property, it decreased at the Waterloo property. Both the properties witnessed an increase in adjusted EBITDA.

Mississippi

Net revenue from Mississippi was $18.4 million, down 3.4% year over year. Nonetheless, adjusted EBITDA of nearly $4 million was up 1.8%.

The company operates two properties in the Mississipii – Lula and Vicksburg.

While net revenue and adjusted EBITDA increased at the Vicksburg property, the Lula property witnessed a fall in the same.

Missouri

In the fiscal second quarter, net revenue at Missouri properties was $59.9 million, up 0.6% year over year. Adjusted EBITDA was $17.1 million, up 6.8% from the year-ago quarter figure.

The company’s four properties in the Missouri – Girardeau, Caruthersville, Boonville and Kansas City – mostly posted strong results.

Girardeau, Caruthersville and Boonville witnessed an increase in net revenue. However, net revenue declined at Kanas City. All four properties witnessed an increase in adjusted EBITDA in the quarter.

Pennsylvania

In the fiscal second quarter, net revenue was $9 million at Nemacolin, down 6.2% year over year. Adjusted EBITDA was of a loss of $0.1 million. An increase in table games tax rates during the quarter as well as an higher state administrative fees impacted the property.

Zacks Rank & Stocks to Consider

Isle of Capri Casinos presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Las Vegas Sands Corp. LVS, MGM Resorts International MGM and Melco Crown Entertainment Ltd. MPEL. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Las Vegas Sands’ full-year 2016 earnings climbed 6.8% over the last 30 days.

The Zacks Consensus Estimate for MGM Resorts 2016 earnings increased 89.2% over the last 30 days. Further, for 2016, EPS is expected to grow over 100%.

Melco Crown posted positive earnings surprises in each of the last four quarters, with an average beat of 102.92%. The Zacks Consensus Estimate for Melco Crown’s 2016 earnings moved up 70% over the last 30 days.

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