Shares of Isle of Capri Casinos slumped to a new 52-week low Tuesday after the casino operator reported it swung to a fiscal second-quarter loss, but some analysts remained upbeat on the company’s potential.
Late Monday, Isle reported a quarterly loss of USD 24.6 million, or 80 cents per share. Excluding one-time items, the company posted a loss of 45 cents per share. Analysts polled by Thomson Financial expected a loss of 4 cents per share.
Deutsche Bank North America analyst Beth McNellis said the results disappointed. While she is pleased with recent staff additions, the analyst said competition and worries about the US economy could overhang the stock near term.
However, Robert LaFleur, a Susquehanna Financial Group analyst, said Isle’s results were not as bad as they looked. In a note to clients, LaFleur said he expects Biloxi, Miss., results to improve when the US. Highway 90 bridge reopens, and Florida results to get a boost from the return of winter residents.
Steven Wieczynski of Stifel Nicolaus & Co. also remained optimistic, citing quarterly margin improvement and a review of international operations. „We believe the worst is behind Isle of Capri Casinos and the recent sell-off has created an attractive buying opportunity,“ he wrote in a client note.