Boyd Gaming Weak in Third Quarter Due to Las Vegas
Boyd Gaming lost ground after its third quarter results were hit by a slowdown in Las Vegas. The company said it remains interested in acquisitions but will not rush into one.
Regional casino operator Boyd Gaming's shares fell on Friday after its third quarter results came in below expectations. The company's results were hurt by a slowdown in Las Vegas.
Management reiterated its interest in merger and acquisition activity in the casino sector. Chief Executive Keith Smith said the company could be interested if a "high quality asset" became available for purchase. However, management also stressed that it will not make an acquisition just to get a deal done.
Analysts note that Boyd's debt ratio has fallen to about 2 times, which they say puts the company in a position to move quickly if a suitable opportunity arises. The company ended the September quarter with 297.2 million dollars in cash and 2.7 billion dollars in debt.
Boyd's adjusted EBITDA for the third quarter was 320 million dollars, and its revenue was 991 million dollars. Wall Street had expected 316 million dollars in EBITDA and 1 billion dollars in revenue. The revenue shortfall stems from weak demand at both local and Strip properties in Las Vegas.
The company expects construction work at major Las Vegas local properties, including Orleans and Suncoast, to wrap up next year. A recovery is projected for 2027 as tourism rebounds.
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