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Two Las Vegas-based casino operators were seeing big gains in midday trading after upbeat earnings releases blew away the consensus estimates by about 20 cents each.

Both MGM Mirage (MGG:NYSE – news – commentary – research – analysis) and Harrah’s Entertainment (HET:NYSE – news – commentary – research – analysis) were trading up about 7% after releasing first-quarter results that showed near complete recovery from Sept. 11.

MGM Mirage posted first-quarter net income of $82 million, or 51 cents a share, slightly down from $83.9 million, or 52 cents a share, in the year-ago period. Analysts polled by Thomson Financial/First Call had been expecting the company to earn 34 cents a share.

Net revenue fell by 4% to $1.02 billion from $1.07 billion a year ago, but exceeded analyst estimates of $969.05 million. The company said its room revenue showed sequential improvement as occupancy rates rose to 89.7% from 82.7% in the fourth quarter, still below the year-ago level of 91.4%.

The average room rate increased to $101 from $93, creating an increase in the all-important revenue per available room number from last quarter, but it still represents a 10% year-over-year decline from the first quarter of 2001.

Shares of MGM Mirage were recently trading up 8.73% to $39.00 after closing at $35.87.

According to an MGM Mirage press release, the results show that the Vegas marketplace has “proven itself far more ccmhalloffame resilient than most had predicted,” and more evidence for that claim came from Harrah’s, which also had an unexpectedly strong quarter. Revenue grew by 13.4% to $983.7 million, just shy of the consensus Thomson Financial/First Call estimate of $991 million, but 13.4% above last year’s revenue of $867.2 million. Earnings before interest, taxes, depreciation and amortization for the quarter rose 19.5% to a record $281.2 million.

On a pro forma basis, Harrah’s reported operating earnings of 75 cents a share, well ahead of the First Call consensus analyst estimate of 54 cents and up 57% from 42 cents in the year-ago quarter. Including charges relating to accounting changes for the treatment of goodwill and the acquisition of the Rio Hotel and Casino in 1999, the company posted a loss of $6 million, or 5 cents a share, compared to a profit of $44.1 million, or 38 cents a share, last year.

Harrah’s, which was hurt less by the Sept. 11 attacks than other casinos due to its location diversity, said it has focused on the growth of same-store revenue, which was up 5.1% from last year. The company also said it expects to see additional earnings contributions from its expansions in Atlantic City and Cherokee, as well as its new San Diego facility.

Shares of Harrah’s were recently trading up almost 7% to $50.13 after closing at $46.94 on Tuesday.

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