Pinnacle Entertainment Inc.'s shares jumped in trading Wednesday after the casino operator reported revenue gains at several of its casinos during the fourth quarter as well as lower costs across the company.
The company posted net income of $25 million, or 40 cents per share, for the period that ended Dec. 31. In the same quarter in 2010, Pinnacle posted a loss of $10.1 million, or 5 cents per share.
After excluding income from discontinued operations and other special items affecting both quarters, the company earned 26 cents per share versus a loss of 3 cents per share last year.
Analysts polled by FactSet anticipated earnings of 10 cents per share.
Pinnacle's revenue increased nearly 4 percent to $275.8 million from $265.7 million. Analysts expected about $279 million.
The company said higher revenue at its L'Auberge Lake Charles and Boomtown Bossier City properties in Louisiana, the Belterra casino in Indiana and its St. Louis properties, as well as a significant reduction in corporate overhead costs, drove the quarter's gain.
The casino industry in the U.S. has struggled to recover from the recession as consumers watch spending.
Pinnacle's corporate overhead expenses declined more than 37 percent in the quarter as it cut costs at its Las Vegas headquarters and a service center. Total expenses fell 4 percent to $238.7 million.
Pinnacle owns and operates seven casinos, which are located in Louisiana, Missouri, Indiana and Nevada. It also owns a racetrack in Ohio. The company is developing another casino and hotel in Louisiana and has a stake in a company that is building a casino and hotel in Vietnam.
It's trying to sell or is in the process of selling several properties in Atlantic City, N.J., Reno, Nev., and other areas.
The company also reported a full year loss of $2.5 million, or 4 cents per share, versus a loss of $23.4 million, or 38 cents per share, in 2010. Revenue increased nearly 8 percent to $1.14 billion from $1.06 billion.
Shares of Pinnacle rose 61 cents, or 6 percent, to $10.85 in midday trading.