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.
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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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