Boyd Gaming hits new low as analyst cuts estimates

Shares of casino operator Boyd Gaming Corp. slid to an all-time low last week as an analyst trimmed some adjusted earnings forecasts on the likelihood that gaming revenue results will not improve until 2010.

Boyd Gaming slides to all-time low as analyst reduces estimates, predicting weak revenue. Jeffrey Logsdon of BMO Capital Markets said 2009 looks to be difficult for Las Vegas-based Boyd, partly due to weakness at facilities in its central region and properties where Las Vegas locals play.

The casino industry has been pressured as consumers continue to curb discretionary spending due to the ongoing housing slowdown, increased food costs, rising unemployment claims and intensifying fears about the depths of the recession.

"We now estimate 2009 to experience a year-over-year decline in net revenue that is close to 5 % versus our previous estimate for revenues to be flattish," he wrote in a client note.

The analyst cut his 2009 adjusted earnings outlook on Boyd to 62 cents per share from 78 cents per share and reduced his 2010 adjusted profit forecast to 77 cents per share from 92 cents per share. He maintained a "Market Perform" rating. Boyd Gaming's stock dropped 14 cents, or 4.6 % to USD 2.88 in afternoon trading. The stock hit a low of USD 2.82 earlier in the day.