Caesars’ loss is double

Analysts had projected a 96-cent loss, the average of four estimates compiled by Bloomberg. Revenue was little changed at us$ 2.17 billion, also missing projections of us$ 2.29 billion.“Results were below our expectations, particularly in Las Vegas,” said John Kempf, an analyst at RBC Capital Markets in New York who has an underperform rating on the stock. “It’s clear to us that Las Vegas is not immune to economic weakness being seen in other regional markets.”

Expectations were low given recent monthly reports of shrinking gambling revenue in Nevada and Atlantic City, New Jersey, along with individual results from Wynn Resorts and Las Vegas Sands according to Susan Berliner, a JPMorgan Chase & Co. debt analyst.
“I think the world since April or May has gotten more difficult,” Gary Loveman, Caesars’ chairman and chief executive officer, said yesterday on a conference call. “There’s a trepidation on the part of consumers to spend at the rate they have historically.”

Revenue declined almost 1 % at Caesars resorts in Las Vegas and 8.6 % in Atlantic City, the company said. Caesars fell as much as 4 percent to us$ 8.13 in extended trading. The stock rose 1.8 % to us$ 8.47 at the close in New York and had fallen 5.9 percent since the company’s initial public offering in February.