(KZL) - exceeded estimates in five out of the past six quarters - Atlantis Paradise Island is a cash cow

Kerzner International Limited has exceeded estimates in five out of the past six quarters, with two companies raising their numbers for this year. Earnings estimates for 2006 have increased seven cents to $2.66 over the past 90 days. Second-quarter estimates have jumped over 10% in the past week to 99 cents per share. KZL is trading at 23.8x next year's earnings estimates, slightly above the long-term growth rate of 20%, giving the stock a PEG ratio of 1.19. Full Analysis Kerzner International Limited (KZL), through its subsidiaries, engages in the ownership, development, and operation of destination resorts, gaming entertainment properties, and luxury resort hotels worldwide. The company operates in three segments: Destination Resorts, Gaming, and One&Only Resorts. In addition, the company operates a tour operator business. The company was incorporated as Sun International Hotels Limited in 1993 and changed its name to Kerzner International Limited in 2002. The company said first-quarter profit climbed 28 percent to $1.27 per share, compared with $38 million, or $1.01 a share, in last year's first quarter. Quarterly revenue grew 16 percent to $234.8 million from $201.7 million. Growth at its luxury resort segment offset lower earnings at gaming and destination resort units. Estimates called for $1.14 per share. Kerzner is in an enviable competitive position. The company has chosen not to compete in the main gambling hubs of Las Vegas and Atlantic City. The company instead operates in distinctive locations, where it often secures exclusive contracts. Atlantis Paradise Island is a cash cow, and Kerzner has plenty of room to expand the property. KZL also has compelling growth opportunities in places such as Dubai and Morocco, and it plans to bid for one of two casino licenses in Singapore. The company has exceeded estimates in five out of the past six quarters, with two companies raising their numbers for this year. Earnings estimates for 2006 have increased seven cents to $2.66 over the past 90 days. Second-quarter estimates have jumped over 10% in the past week to 99 cents per share. KZL is trading at 23.8x next year's earnings estimates, slightly above the long-term growth rate of 20%, giving the stock a PEG ratio of 1.19. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home