As reported by: Reuters
Station Casinos Inc. (STN.N: Quote, Profile, Research) , a gambling operator catering to Las Vegas residents, on Tuesday posted a strong rise in third-quarter earnings as the city economy boomed and a California Indian casino managed by Station expanded.

Net income rose to $29.1 million, or 43 cents per share, from $19.8 million, or 32 cents per share, a year earlier, Las Vegas, Nevada-based Station said.

Excluding certain items, the company said adjusted earnings totaled 46 cents per share, up from 35 cents per share a year earlier. On that basis, Wall Street analysts, on average, were expecting Station to earn 44 cents per share, according to Reuters Estimates.

Station also announced a 20 percent increase in its quarterly dividend on Tuesday, making it 21 cents a share. The new dividend will be payable on Dec. 3, 2004, to shareholders of record on Nov. 12, 2004.

Looking ahead, the company expects fourth-quarter earnings of 48 cents to 52 cents a share, assuming 68 million fully diluted shares. Analysts, on average, expect 49 cents a share.

Thousands of people are moving to Las Vegas every month, increasing the size of the market for locals that is dominated by Station and Boyd Gaming Corp. (BYD.N: Quote, Profile, Research) -owned Coast and smaller companies with properties off the tourist-oriented Las Vegas strip.

Station expects revenue growth in the fourth quarter of 10 to 12 percent in Las Vegas, and expects EBITDA of about $94 million to $98 million. Analysts, on average, expect revenue of $247.5 million and EBITDA of $92 million.

For the full year, Station expects EBITDA of about $372 million to $376 million and adjusted earnings of about $1.94 to $1.98 a share, assuming 67 million fully diluted shares. Wall Street expects $364.3 million in EBITDA and earnings of $1.93 a share.