Boyd Gaming's third-quarter earnings miss estimates on Las Vegas weakness

LAS VEGAS · Boyd Gaming Corporation reported weaker-than-expected third-quarter earnings, missing analyst estimates as declining destination travel to Las Vegas and construction disruptions weighed on its Nevada operations. The casino operator posted adjusted earnings of $1.67 per share for the quarter ended September 30, 2026, below the $1.70 consensus, while revenue declined 1.4% year over year to $990.5 million. Adjusted EBITDAR fell to $319.6 million from $321.8 million a year earlier. The company's shares declined 1.4% in after-hours trading on Thursday.

President and CEO Keith Smith said the results were impacted by increased softness in destination business to Las Vegas, primarily at the Orleans property, and construction disruption at the Suncoast. "In Las Vegas, play from local residents remained strong. However, this trend was offset by increased softness in destination business to Las Vegas, primarily at the Orleans, and construction disruption at the Suncoast," Smith said during Thursday's earnings call. He noted that downtown Las Vegas results were also hurt by weaker destination demand, citing storms in Hawaii during August and September alongside sharply higher Hawaiian airfares. The company's Midwest & South segment recorded nearly 3% revenue growth and 2.5% adjusted EBITDAR growth after adjusting for property closures and sales. Its online gaming segment delivered double-digit adjusted EBITDAR growth, supported by continued strength in the Stardust casino app. Net income for the quarter totaled $124.9 million, or $1.71 per share, compared with $1.4 billion, or $17.81 per share, a year earlier, when results included a $1.4 billion after-tax gain from selling Boyd's stake in FanDuel.

Smith described the current softness in destination travel as more intense in the third quarter compared to the first and second quarters. "Part of that is driven by the fact that in Las Vegas, as everyone knows, the third quarter, the summer quarter, is our weakest quarter," Smith told analysts. "So these types of pressures get intensified during the quarter." He said July was okay, August was weaker than anticipated, and September was a little better than August. Despite the challenges, the remainder of the properties in Boyd's Las Vegas Locals portfolio achieved 3% growth in both revenue and adjusted EBITDAR. Smith highlighted the strength of the southern Nevada economy, with population exceeding 2.4 million, wage growth near 6%, and job growth among the highest of major U.S. metropolitan areas. "In all, we remain encouraged by the continued strength of the Las Vegas economy and its prospects for our local segment," Smith added.

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The company is progressing with renovations at several properties. Boyd completed renovations to Suncoast's public areas during the quarter and began remodeling hotel rooms, with completion expected in the first quarter of 2027. Renovations to 1,800 rooms at the Orleans are expected to be completed in November, followed by 400 rooms at Suncoast. A broader modernization program at the Orleans is scheduled to begin in early 2027. Smith noted that more than 300 rooms have been out of service daily at the Orleans for the past year, and their reopening will support weekend demand.

On mergers and acquisitions, Smith said the company's appetite and discipline remain unchanged. "We have the same discipline we've had over the years, which is we have a set of filters that it has to work its way through, being the right asset or the right price and the right market," Smith told analysts. He added that the company has "as big of an appetite as we've ever had, but we remain disciplined." Boyd repurchased $164 million in shares during the quarter and paid a $0.20-per-share dividend on October 15. As of September 30, it held $297.2 million in cash and $2.7 billion in total debt.