Boyd up as adj. results meet analysts' estimates

Feb 26, 2009 9:07 PM
Staff & Wire Reports |

Shares of Boyd Gaming Corp. (BYD) climbed in early trading Thursday after the casino operator's adjusted fourth-quarter results met Wall Street's expectations.

The Las Vegas-based company posted a loss of $220.8 million due to impairment charges related to some prior acquisitions and a consumer spending pullback. Adjusted earnings from continuing operations were $11.4 million, or 13 cents per share, which met the expectations of analysts surveyed by Thomson Reuters.

Analysts' estimates typically exclude one-time items.

Goldman Sachs' Steven Kent said the adjusted earnings results topped his estimate for a profit of 12 cents per share. Boyd's $422.6 million in fourth-quarter revenue also surpassed the analyst's $411 million forecast.

"We think Boyd reported a generally solid quarter in a challenging operating environment, and it provides another example that regional gaming results could be stabilizing," Kent wrote in a client note.

Kent kept a "Neutral" rating and said Boyd's price target is under review.

Boyd also reported revenue declines for Downtown Las Vegas, the Midwest and South as well as at its Las Vegas locals properties, which are casinos frequented mostly by residents of the region.

"Results continue to reflect weak gaming spend in virtually all of Boyd's gaming markets, which we believe should not come as a surprise to investors," Joseph Greff of JPMorgan said.

Boyd, like many casino operators, has struggled as consumers curb their discretionary spending due to the ongoing housing slowdown, eroding credit, rising food costs and unemployment concerns.

Greff also reaffirmed a "Neutral" rating.

The casino operator has 16 gambling properties in Nevada, New Jersey, Mississippi, Illinois, Indiana, and Louisiana.

Boyd Gaming's stock added 43 cents, or 10.8 percent, to $4.41 in morning trading. The stock has traded in a range of 42.81 to $26.25 over the past year.

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