Boyd Gaming Corp. revenue drops but share value rises
27th February, 2009
Despite recording significant losses in the fourth-quarter, the share value for Boyd Gaming Corp has risen an estimated 16%.
Commenting on the situation, Oppenheimer analyst David Katz noted that “Revenues and EBITDA (earnings before interest, taxes, depreciation and amortization) in all operating regions fell year-over-year but were ahead of our expectations."
Although Boyd Chief Executive Keith Smith admitted that it was the company’s largest ever year-over-year decline in the fourth quarter, there was reason to be optimistic saying “we believe we're seeing stabilized trends in the first eight weeks" of 2009.
Boyd owns and operates 16 casinos in six states across America. The casinos reported a net loss of $220.8 million, or $2.51 a share, compared with net income of $31.2 million, or 36 cents per share, a year earlier.
The loss was attributed to impairment charges related to previous acquisitions and a cut in consumer spending. Adjusted earnings from continuing operations were $11.4 million, or 13 cents per share, which met the expectations of analysts.
By Annabel
