Pinnacle Entertainment Swings To Profit; Stock Up - Update

(RTTNews) - Casino operator Pinnacle Entertainment Inc. (PNK), Wednesday reported a swing to profit in the fourth quarter, on a two-fold jump in revenues, largely reflecting the August acquisition of Ameristar Casinos.

Pinnacle shares are up nearly 7 percent in morning trade on the New York Stock Exchange.

The Las Vegas, Nevada-based company posted quarterly net income of $15 million or $0.25 per share, compared with a net loss of $42 million or $0.72 per share last year.

Excluding items, adjusted earnings for the quarter were $0.31 per share, compared with $0.07 per share in the prior year.

On average, 17 analysts polled by Thomson Reuters estimated earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter surged to $535 million from $255 million in the prior year.

Seventeen analysts had a consensus revenue estimate of $539.5 million for the quarter.

In the Midwest segment, revenue more than tripled to $282 million from the prior-year quarter, mainly due to the addition of Ameristar properties, even as tough business conditions prevailed in core gaming markets. In August, Pinnacle completed the acquisition of Ameristar Casinos Inc. for $2.8 billion. The deal added eight properties to the company's portfolio.

South segment revenue for the quarter increased 17.2 percent year-over-year to $198 million.

Pinnacle stock is trading at $24.14, up $1.52 or 6.81%, on a volume of 2.4 million shares.