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Boyd Gaming 3Q adj. profit tops Wall Street

October 25, 2011

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LAS VEGAS—Boyd Gaming Corp.'s third-quarter net income fell 45 percent as the casino operator saw a decline in gambling and food and beverage revenue and spent more on promotions to lure gamblers.

But the company's adjusted results surpassed Wall Street's expectations. Boyd's stock gained 9 cents to $6.65 in premarket trading on Tuesday.

Boyd earned $3.1 million, or 4 cents per share, compared with $5.6 million, or 6 cents per share, a year ago.

Taking out preopening expenses, write-downs and other items, adjusted earnings were 5 cents per share. The performance beat the penny per share that analysts surveyed by FactSet expected.

For the three months ended Sept. 30, revenue dipped 1 percent to $590.2 million from $595.4 million as the company made less in gambling revenue and food and beverage revenue.

Wall Street expected revenue of $598.2 million.

Promotional allowances increased to $108.8 million from $107.6 million.

Boyd's performance in Las Vegas improved, with revenue for the Las Vegas locals segment edging up to $145.9 million from $145.6 million and revenue for downtown Las Vegas properties up 2.8 percent to $53.3 million Revenue for the Las Vegas locals segment includes properties where people who live in Las Vegas frequent.

Revenue at the Borgata Hotel & Spa in Atlantic City, N.J., a 50 percent joint venture with MGM Resorts International, slipped 2.7 percent to $202 million. The company said that casino's results were hurt by its closing in late August due to Hurricane Irene.

Revenue for the Midwest and South was basically flat at $187.9 million.