Slow and steady improvement is no longer good enough for regional gaming operators. As Boyd Gaming
The fix is in
Revenue grew an impressive 10% to $606.7 million, even topping the $595.9 million analysts had expected. The Midwest and South drove most of the improvement, growing revenue 26.1% year over year, almost 100% due to the IP Casino acquisition. The Las Vegas market continued to struggle as the economy there continues to suffer.
Much to investors chagrin, revenue growth didn't translate to bottom-line performance either. Boyd lost $491,000, or a penny per share, in the fourth quarter and $3.9 million for the full year. On an adjusted basis, loss per share was $0.03, greater than the penny loss analysts expected.
Stuck in a rut
Competition around the country is having a negative impact on earnings for all casino operators. Penn National
This will also be a slight drag for MGM Resorts
Foolish bottom line
Competition in regional gaming is only getting worse and I don't see a reason to be buying Boyd's weak quarter right now. If online gaming legislation passes the story could change, but for now, I'm staying far away from regional gaming operators.
Interested in reading more about these gaming stocks? Add them to My Watchlist, and My Watchlist will find all of our Foolish analysis on each stock.
- Add Penn National Gaming to My Watchlist.
- Add MGM Resorts International to My Watchlist.
- Add Caesars Entertainment to My Watchlist.
- Add Boyd Gaming to My Watchlist.
- Add Ameristar Casinos to My Watchlist.