LAS VEGAS - Boyd Gaming Corporation (NYSE:BYD (SZ:002594)) faced a challenging start to 2024, with first-quarter earnings falling short of analyst expectations.
The company reported adjusted earnings per share (EPS) of $1.51, which was $0.06 below the analyst estimate of $1.57. Despite this, revenue slightly exceeded expectations at $960.5 million, compared to the consensus estimate of $954.11 million. However, this was a slight decrease from the $964.0 million reported in the same quarter last year.
The company's stock price responded negatively to the news, dropping by 7.54. Keith Smith, President and Chief Executive Officer, attributed the weaker performance to severe winter weather impacting their Midwest & South segment and increased competition in the Las Vegas Locals market. Nevertheless, he highlighted that many positive trends from the previous quarter continued and emphasized the company's strong operating margins and significant cash flows.
Boyd Gaming's net income for the first quarter was $136.5 million, or $1.40 per share, a notable decline from $199.7 million, or $1.93 per share, in the first quarter of 2023. Adjusted EBITDAR also saw a decrease to $330.5 million from $367.1 million YoY.
The company's Online segment maintained its strong performance, with FanDuel continuing as the nation's leading online sports-betting company. Additionally, the Managed & Other segment benefited from robust results at Sky River Casino in northern California, which has sustained growth over 18 months since its opening.
Boyd Gaming remains committed to returning capital to shareholders, as evidenced by the payment of a quarterly cash dividend of $0.17 per share on April 15, 2024, and the repurchase of $105 million in shares of its common stock during the first quarter.
As of March 31, 2024, Boyd Gaming reported having $283.5 million in cash and a total debt of $2.9 billion. With a focus on disciplined operating and marketing strategies, the company is optimistic about navigating the current environment and delivering value to its shareholders. Smith expressed confidence in the company's ability to maintain its trajectory, stating, "Looking ahead, we remain confident in our ability to successfully navigate the current environment and deliver value to our shareholders."
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