Mandalay Warns It Will Miss Forecasts

Mandalay Resort Group, the biggest hotel owner on the Las Vegas Strip, said its fiscal third-quarter profit will miss analysts’ estimates because of weaker results in its secondary casino markets. Las Vegas-based Mandalay expects profit from operations of 37 cents a share for the quarter, well below the 50-cent estimate of analysts polled by First Call/Thomson Financial. Mandalay earned 37 cents a share last year. Mandalay said its properties in the Nevada markets of Reno, Laughlin and Jean and in Tunica, Miss., reported lower cash flow for the quarter compared to last year. The company also cited a lower take from table games at its Mandalay Bay casino in Las Vegas. Cash flow rose at the company’s Las Vegas Strip properties, which include the Luxor, Excalibur and Circus Circus. The company said earnings before interest, taxes, depreciation and amortization, a measure of cash flow, rose an estimated 15% in the quarter from a year ago. Mandalay, which released its warning after the markets closed, expects to release quarterly results Nov. 21. Mandalay shares closed up 44 cents at $20.81 on the NYSE.