Isle of Capri Casinos, Inc.

Isle of Capri Casinos (ISLE - Snapshot Report) has crushed analysts' estimates and the consensus estimate for next year are up sharply.

Company Description

Isle of Capri develops and owns hotel and casinos in the U.S. with the same name as the corporation. Additionally the company has casinos on cruise ships and owns a racing facility.

Crushed Estimates

The St. Louis-based company reported fourth-quarter results on June 10th that included earnings per share of 15 cents. Wall Street was looking for a 3 cent loss. After improving operations to save more than $52 million, the gaming company was able to cope with the loss in revenue stemming from the deteriorating economy.

Isle of Capri also has much more financial flexibility after buying back $143 million of its debt and settling claims related to Hurricane Katrina.

Consensus Turns Around

Following the previously mentioned report analysts quickly revised estimates. The consensus is now a gains 23 cents, up from a loss of 24 cents. Forecasts for next year are averaging 58 cents, up from a 9 cent loss.

Compare these figures to 68 cent loss for 2008, giving it year-over-year growth of 146%. The rate for next year would be 154%.

Better than its Peers?

Isle of Capri has a much lower debt-to-equity ratio that most in the industry. The company has debt that is 5.7 time higher than its equity compared to the industry average of almost 44 times. Its profit margin is just under 4%, where as the norm is less than -13%.

The Chart

Shares have been consolidating in the lower teens since the earnings report. Volume is slowing, but could pick up if the stock makes a sharp move. Take a look below.

Read the full analyst report on ISLE