Shares of Ameristar Casinos Inc., owner of Ameristar Casino Blackhawk, had their biggest increase in 20 months after the company reported third-quarter earnings that exceeded its forecast.
Ameristar shares jumped $2.14, or 9.7 percent, to $24.32 as of this morning in Nasdaq Stock Market composite trading, the biggest gain since February 2005.
The company reported profit of 35 cents to 36 cents for the third quarter, surpassing its estimate of 27 cents to 29 cents, according to a statement today. Analysts, on average, were expecting 29 cents, according to a survey by Thomson Financial.
Third-quarter results included $24 million of depreciation expense and $12.5 million of interest expense. Ameristar had previously forecast expenses of $25 million and $12 million, respectively. The Las Vegas-based company plans to release more detailed results Oct. 25.
Ameristar, which owns seven casinos in Missouri, Nebraska, Iowa, Mississippi, Colorado and Nevada, bid earlier this year for Aztar Corp., owner of the Tropicana casino in Las Vegas. It dropped out of the contest after two rivals topped its offer.
