Ameristar climbs; analysts relatively pleased with results

Earlier in the day Ameristar reported it swung to a first-quarter loss of $1.07 per share because of a $129.1 million impairment charge related to lower expectations for its East Chicago casino acquisition.

David Katz of Oppenheimer & Co. put earnings at 42 cents per share, excluding the charge, while Bear Stearns analyst Joseph Greff put adjusted net income at 41 cents per share. Ameristar did not provide its own adjusted earnings-per-share figure.

Analysts polled by Thomson Financial expected a profit of 31 cents per share.

Katz reiterated a "Perform" rating and $19 price target.

Greff did not expect the quarterly results to shock the market.

"As has been the case this earnings season, we think investor expectations have been pretty low heading into Ameristar's release and don't think these results will surprise many given the monthly jurisdictional gaming revenue reports through the first quarter," he wrote in a client note.

Greff maintained a "Peer Perform" rating.

The gaming sector, along with many other industries, has been squeezed as consumers curb spending due to the ongoing housing slowdown, eroding credit, rising food and gas costs and recession fears.

Shares of Las Vegas-based Ameristar Casinos added 11 cents to $17.25. The stock has traded between $15.29 and $38 over the last year.