Boyd Gaming: Q4 Earnings Beat Street Despite Sales Decline

Boyd Gaming reports Q4 net income more than doubled to $56.3 million, or $0.64/share, compared to $22.9m ($0.25/share) last year, on a 4% drop in revenue to $520.8m. Analysts expected $0.39/share on revenue of $509.2m. Boyd attributes its quarterly gain in net income to lower expenses and an insurance gain from a hurricane-related settlement. It reported strength in its downtown Las Vegas and Central Region properties, although sales for the former fell slightly short of last year's record total. Its Atlantic City Borgata property maintained its market share lead, but posted lower gaming sales, while non-gaming revenue jumped 17.7% due to public space expansion. Boyd said it has further expansion plans for the Borgata as well as in Indiana and Florida. Construction for the now $3.3b 5,000 room Echelon Place in downtown Las Vegas is set to commence in Q2 and is planned to open in Q3 2010.

Sources: Press release, Houston Chronicle-AP
Commentary: Hands Off Boyd • A Closer Look at Casino Stocks • Valuing the Casino Industry: Are There More Harrah's Out There?
Stocks/ETFs to watch: Boyd Gaming (BYD). Competitors: Harrah's Entertainment (HET), MGM Mirage (MGM), Station Casinos (STN)

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