Morgan Joseph Maintains a 'Hold' on Isle of Capri Casinos (ISLE); Mother Nature's a Witch
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Price: $10.01 --0%
Rating Summary:
3 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
3 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
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Morgan Joseph maintains a 'Hold' on Isle of Capri Casinos (NASDAQ: ISLE).
Morgan analyst said, "Many Isle properties have been severely affected by flooding in regions adjacent to the Mississippi River. The Davenport (IA) property was closed for the last two weeks of April, resulting in a >50% y/y decline in gaming revenue that month. This was the only property closure that should affect F4Q11 results, which we believe will hurt EBITDA by about $2mm and EPS by roughly $0.03; however, there were four additional closures in May. Indeed, Isle closed Caruthersville (MO), Lula (MS), Natchez (MS), and Vicksburg (MS) in early and mid-May..."
"We will adjust our forecast once we receive an update on Lula and Natchez and get a sense of how Isle's customers are spending at Caruthersville and Vicksburg...Our F4Q11 Estimates: Revenue of $279.5mm, EBITDA of $58.8mm, and EPS of $0.22."
"ISLE currently trades at an enterprise multiple of 7.3x our CY11 EBITDA estimate. The company's leaner cost structure and more efficient marketing efforts should allow revenue to flow heavily to the EBITDA line when a robust top-line environment emerges. Although we believe we have seen stabilization in most of Isle's markets, we would not categorize it as being robust. As a result, the current risk/reward profile is not compelling enough to warrant a position in ISLE stock, in our opinion."
For more ratings news on Isle of Capri Casinos click here and for the rating history of Isle of Capri Casinos click here.
Shares of Isle of Capri Casinos closed at $8.82 yesterday.
Morgan analyst said, "Many Isle properties have been severely affected by flooding in regions adjacent to the Mississippi River. The Davenport (IA) property was closed for the last two weeks of April, resulting in a >50% y/y decline in gaming revenue that month. This was the only property closure that should affect F4Q11 results, which we believe will hurt EBITDA by about $2mm and EPS by roughly $0.03; however, there were four additional closures in May. Indeed, Isle closed Caruthersville (MO), Lula (MS), Natchez (MS), and Vicksburg (MS) in early and mid-May..."
"We will adjust our forecast once we receive an update on Lula and Natchez and get a sense of how Isle's customers are spending at Caruthersville and Vicksburg...Our F4Q11 Estimates: Revenue of $279.5mm, EBITDA of $58.8mm, and EPS of $0.22."
"ISLE currently trades at an enterprise multiple of 7.3x our CY11 EBITDA estimate. The company's leaner cost structure and more efficient marketing efforts should allow revenue to flow heavily to the EBITDA line when a robust top-line environment emerges. Although we believe we have seen stabilization in most of Isle's markets, we would not categorize it as being robust. As a result, the current risk/reward profile is not compelling enough to warrant a position in ISLE stock, in our opinion."
For more ratings news on Isle of Capri Casinos click here and for the rating history of Isle of Capri Casinos click here.
Shares of Isle of Capri Casinos closed at $8.82 yesterday.
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