Skip to main content
Publish date:

Boyd Gaming Swings to Loss

Results are worse than Wall Street's expectations.

Boyd Gaming

(BYD) - Get Boyd Gaming Corporation Report

said Thursday that it swung to a quarterly loss, as the company's casinos catering to the locals in Las Vegas faced weak results amid a competitive operating environment.

Results were also dragged down by charges related to the closure and eventual redevelopment of the Stardust casino site in Vegas and a $65 million charge related to the sale of Boyd's South Coast casino.

Boyd reported a third-quarter loss of $12.9 million, or 15 cents a share, compared with a profit of $32.9 million, or 37 cents a share, a year earlier.

Adjusted earnings from continuing operations -- which exclude the South Coast sale and other one-time charges -- were 44 cents a share, compared with 56 cents a share in the prior period.

The earnings on this basis missed Thomson First Call's average analyst estimate of 52 cents.

Boyd's total revenue rose 1% to $530.7 million, short of Wall Street's target of $567 million.

Boyd's casinos that cater to the locals in the Vegas market continue to get beaten up by

TheStreet Recommends

Station Casinos'

(STN) - Get Stantec Inc Report

Red Rock casino, which opened earlier this year. Boyd's adjusted operating profits at these properties fell 21% to $56.2 million in the quarter.

Operating profits at the company's central region properties -- casinos in Indiana, Illinois, Mississippi and Louisiana -- rose 32% to $64.5 million.

At the company's hip Borgata Casino in Atlantic City, which is jointly owned with

MGM Mirage

(MGM) - Get MGM Resorts International (MGM) Report

, revenue rose 13%, but Boyd's share of operating profits fell 13% to $27 million.

Earnings at the property were dragged down by the three-day shutdown of the casinos by New Jersey this summer, along with development expenses and disruptions due to the renovation of the casino. The property also incurred greater marketing costs and some labor inefficiencies, the company said.

Shares of Boyd recently were down 49 cents, or 1.2%, to $39.26.