Harrah's Entertainment misses Q1 profit estimates
The casino and gambling
company Harrah's Entertainment Inc. (NYSE:HET) reported
first-quarter profits, which were below the Wall Street's
The report stated that the
lower than estimated 2007 Q1 profits were due to advertising
over-spending in the Northeast. The posted net income was $185.3
million, compared to $182.4 million for Q1 of 2006, or 98 cents
a share in both instances. Adjusted, the earnings were 88 cents
a share, a 12 cents lower than the Wall Street expected.
Harrah's Entertainment revenue, however, rose 13% to $2.66
billion, beating the predicted $2.49 billion.
Harrah's Entertainment agreed
in December last year to be acquired (see link on bottom) by the
private equity firms Apollo Management and Texas Pacific Group
for about $17 billion overall ($90 a share), and the deal was
approved by the shareholders last month and is expected to be
finalized by the end of the year.
Harrah's stock closed at
$85.21 yesterday and is currently trading at $85.42 or 0.25%
higher (9:53am EST).
Harrah's operates over 40
casinos world wide, some of the most famous casinos are
Harrah's, Caesars, Horseshoe, Flamingo and Bally's. Harrah's
Entertainment was established 68 years ago in Reno, Nevada and
currently employs over 80,000 people.