Bear of the Day: Full House Resorts (FLL)

Zacks

Full House Resorts (NASD:FLL) is a casino gaming company, incorporated in 1987. The company owns local casinos as well as manages casinos on behalf of Native American tribes and commercial clients. Currently FLL owns and/or manages five casinos in four states.
 
Declining estimates sent FLL back to a Zacks Rank # 5 (Strong Sell) earlier this month.
 
Disappointing Third Quarter Results
 
On November 9, 2012, FLL reported its third quarter results. Adjusted operating net income for the quarter were $0.5 million or $0.02 per share, compared to net income of $2.1 million or $0.11 per share in the prior-year period.
 
Earnings were substantially short of the Zacks Consensus Estimate of $0.06 per share. This was the second consecutive quarter of negative earnings surprise for FLL.
 
According to the management, increased competition and continuing slow economy resulted in a challenging environment.
 
Downward Revisions
 
Following disappointing results, analysts have cut their estimates for GGS. Zacks Consensus Estimates for the current year and the next year are currently $0.02 per share and $0.07 per share, down from $0.04 per share and $0.11 per share respectively, 60 days ago.
 
The following “Price & Consensus” chart illustrates decaling estimates trend for the stock.


 
Due to negative earnings momentum this stock has been Zacks Rank # 5 (Strong Sell) or # 4 (Sell) since October 29, 2013.
 
Bottom Line
 
Investors looking for a better play on the industry could consider Wynn Resorts (WYNN) a Zacks Rank # 1 (Strong Buy) stock. The company is expected to report 45.2% year-over-year earnings growth for Q4.
 
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