Why Boyd Gaming's Shares Plunged (BYD)

Why Boyd Gaming's Shares Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of regional gaming operator Boyd Gaming (NYSE: BYD ) fell 14% today after the company released a disappointing earnings report.

So what: Revenue rose 7% to $615.2 million in the quarter, but fell short of the $626.9 million analysts had expected. Net income was just under $1 million, or $0.04 per share on an adjusted basis, also falling below estimates of $0.10.

Now what: New Jersey was the big loser with revenue falling 4% to $175.4 million. The biggest concern is that total adjusted EBITDA fell 3.9% in the quarter to $113.8 million, showing that the company as a whole isn't headed in the right direction. But the Midwest and South both had strong returns and are returning to a profit -- even if a small one, it's better than last year. I'm not buying into the stock until I see some improvement, and with gaming expanding across the country I'm afraid significant improvement may be a ways off.

Interested in more info on Boyd Gaming? Add it to your watchlist by clicking here.

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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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