Isle of Capri Casinos Inc. returned to a profit in its fiscal second quarter Tuesday, benefiting from lower operating expenses and reimbursed development costs.
Shares of the company surged in morning trading.
The casino operator made $1.6 million, or 5 cents per share, for the three months ended Oct. 25. That compares with a loss of $13.5 million, or 43 cents per share, during the same period a year earlier.
The results beat the estimates of analysts surveyed by Thomson Reuters, who predicted a loss of 5 cents per share. These estimates generally exclude one-time items.
Isle had $6.8 million in expense recoveries during the quarter related to the reimbursement of Pittsburgh development costs. It also had a property tax settlement of $900,000.
Revenue dipped 1 percent to $247.4 million from $249.6 million on lower room revenue and increased promotions.
Wall Street had expected higher revenue of $250.2 million.
The casino industry has struggled during the recession as gamblers have cut back on their visits and how much they spend when they do frequent a casino. Many casino operators have tried to combat the decline in consumer spending by reducing their costs and clamping down on development projects.
Isle lowered its operating expenses to $234.5 million from $243.8 million during the quarter.
The company owns and runs casinos in Mississippi, Louisiana, Iowa, Missouri, Colorado and Florida.
Its stock added 96 cents, or 13 percent, to $8.53.