July 24, 2012
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.