Isle of Capri loses appeal with investors

Sep 1, 2009 5:04 PM
Earnings by Ray Poirier |

Isle of Capri Casinos Inc. (ISLE), darling of some investors in recent months, lost some of its appeal following the report that the company earned $791 million or $0.02 per share. Analysts had expected earnings to reach $0.13 per share.

Following the announcement, the price for ISLE shares plunged by more than 14 percent.

Last year, the company reported a loss from continuing operations of $2.6 million or $0.09 per share.

Despite the company’s failure to meet analysts’ expectations, Robert LaFleur of Susquehanna Financial Group said he felt positive for the company’s future. He said in a clients’ note that the company "may be close to reaching a deal with the Seminole tribe" that would include lowering gaming taxes on pari-mutuel operations. This would benefit the company’s operations at Pompano Park in South Florida.

LaFleur raised his rating on the company’s shares to "positive" from "neutral" and initiated a $13 price target for the stock.

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