Analyst cuts some Pinnacle Entertainment estimates

A JPMorgan analyst lowered some of Pinnacle Entertainment Inc.'s earnings estimates Wednesday following the casino operator's recent senior notes offering.

On Monday Las Vegas-based Pinnacle closed a private offering of $450 million senior notes due 2017. The casino operator also announced that it bought about $125.5 million of its senior subordinated notes due 2013 submitted before an early tender expired. Pinnacle said at the time that it used part of the proceeds from its senior notes offering to finance the purchase of the subordinated notes.

Joseph Greff reduced Pinnacle's third-quarter profit estimate to 5 cents per share from 6 cents per share and trimmed his full-year forecast to 20 cents per share from 24 cents per share. For 2010, the analyst cut his estimate to 4 cents per share from 16 cents per share.

Analysts surveyed by Thomson Reuters predict third-quarter net income of 5 cents per share and full-year profit of 12 cents per share. They expect earnings of 19 cents per share for 2010. Analysts' estimates normally exclude one-time items.

Greff maintained an "Overweight" rating and $14 price target.

Shares of Pinnacle Entertainment added 11 cents to $10.68 in midday trading.