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LAS VEGAS - Boyd Gaming Corporation (NYSE:BYD) reported third-quarter earnings that exceeded analyst expectations, but shares fell 4% following the announcement as investors focused on the impact of the company’s recent FanDuel transaction.
The casino operator posted adjusted earnings of $1.72 per share, surpassing the analyst consensus of $1.60, while revenue reached $1 billion, significantly above the $872.1 million estimate. Revenue increased 4.5% compared to $961.2 million in the same quarter last year.
The company’s gaming revenue grew to $657.4 million, up 2.6% YoY, with growth across all three property operating segments. However, total Adjusted EBITDAR fell to $321.8 million from $336.6 million in the prior-year period, reflecting lower market-access fees following the FanDuel transaction.
"During the third quarter, our Company continued to achieve revenue and Adjusted EBITDAR growth after adjusting for our recent FanDuel transaction," said Keith Smith, President and CEO of Boyd Gaming. "These results were driven by year-over-year growth in play from our core customers, improving trends in play from our retail customers, our efficient operations, and our ongoing capital investment program."
The Midwest & South segment delivered its strongest third-quarter performance in three years, while the Las Vegas Locals segment saw gaming revenue growth despite declines in destination business.
Boyd Gaming maintained its shareholder-friendly capital allocation strategy, returning $175 million to shareholders during the quarter through dividends and share repurchases. The company repurchased $160 million in shares and paid a quarterly dividend of $0.18 per share.
As of September 30, the company had $319.1 million in cash and $1.9 billion in total debt, maintaining what it described as "the strongest balance sheet in our Company’s history."
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