Casinos on Losing Streak: Wynn, Boyd
(Updated with Wynn and Harrah's quarterly results and stock prices.)
LAS VEGAS (
) -- Casino operators are on a losing streak, as both
Wynn Resorts
(WYNN) - Get Wynn Resorts, Limited Report
and
Boyd Gaming
(BYD) - Get Boyd Gaming Corporation Report
have today reported yet another quarter of falling profit, sending shares of the companies tumbling.
Wynn saw its third-quarter earnings tank 33% to $34.2 million, or 28 cents a share, compared with $51.2 million, or 49 cents, in the year-ago period.
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Casinos are struggling as consumers stay away from the slots. |
The company did, however, managed expectations well; excluding property charges and other items, the company earned 33 cents a share, far surpassing analysts' estimates of 15 cents.
Revenue inched up to $773 million from $769 million last year. But this is still Wynn's fourth consecutive quarter of falling profit.
Similarly, Boyd is on a two-year losing streak, as its profit tumbled nearly 26% in the third quarter -- the eighth consecutive quarter in which the casino operator has reported a profit decline.
During the quarter, the company earned $6.3 million, or 7 cents a share, compared with $8.7 million, or 10 cents, in the year-ago period.
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Excluding one-time items, Boyd actually earned 9 cents a share, a penny shy of analysts' estimates.
Revenue slipped 6.6% to $398.2 million from $426.5 million last year.
Privately-held
Harrah's Entertainment
swung to a third-quarter loss of more than $1 billion and recorded a $1.33 billion drop in the value of its assets.
Harrah's is the largest casino operator in the world by revenue.
Wynn plunged 11% to close at $56.13 and Boyd plummeted 17.8% to $8.78. The results are also sending shares down in the rest of the sector, as
Las Vegas Sands
(LVS) - Get Las Vegas Sands Corp. Report
lost 10.9% to end the day at $14.31,
Isle of Capri
(ISLE)
declined 5.6% to $8.88 and
MGM Mirage
(MGM) - Get MGM Resorts International Report
tanked 12.5% to $9.63.
Las Vegas Sands is set to report its quarterly results on Oct. 29.
-- Reported by Jeanine Poggi in New York
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