Boyd Gaming (NYSE:BYD) Q3 2025 Earnings Call October 23, 2025 05:00 PM ET Company ParticipantsStephen Grambling - Managing DirectorBarry Jonas - Managing DirectorDavid Katz - Managing DirectorJosh Hirsberg - CFOSteven Wieczynski - Managing DirectorDavid Hargreaves - Managing DirectorBrandt Montour - Director of Equity ResearchJohn DeCree - Director of Equity ResearchDaniel Politzer - Executive Director of Equity ResearchDavid Strow - VP of Corporate CommunicationsKeith Smith - President and CEOConference Ca ...

Boyd Gaming (NYSE:BYD) Q3 2025 Earnings Call October 23, 2025 05:00 PM ET Speaker0Good afternoon, and welcome to the Boyd Gaming Third Quarter twenty twenty five Earnings Conference Call. My name is David Straub, Vice President of Corporate Communications for Boyd Gaming. I will be the moderator for today's call, which we are hosting on Thursday, 10/23/2025. At this time, all lines are in listen only mode. Following our remarks, we will conduct a question and answer session.Our speakers for today's call are ...

Boyd Gaming (NYSE:BYD) Q3 2025 Earnings Call October 23, 2025 05:00 PM ET Speaker4Good afternoon and welcome to the Boyd Gaming third quarter 2025 earnings conference call. My name is David Strow, Vice President of Corporate Communications for Boyd Gaming. I will be the moderator for today's call, which we are hosting on Thursday, October 23, 2025. At this time, all lines are in listen-only mode. Following our remarks, we will conduct a question-and-answer session. If at any time during this call you requir ...

Core Insights - Las Vegas is experiencing a significant decline in international tourism, particularly from Canada, which is its largest international market [1][4] - Mayor Shelley Berkley has made a public appeal to Canadian visitors, emphasizing the need for their return to support the local economy [2][14] - The downturn in tourism is attributed to various factors, including economic conditions, rising costs, and political concerns [7][9] Tourism Decline - The city saw a drop of 11% in total tourists in June 2025 compared to June 2024, with international visitors down by 13% [3] - Canadian tourist numbers fell sharply, with Air Canada and WestJet reporting declines of 33% and 31% respectively, and Flair Airlines experiencing a 62% drop [4] - Canadian tourists contributed approximately $3.6 billion to the Southern Nevada economy in 2024, supporting over 43,000 jobs [5] Economic Impact - The tourism industry in Southern Nevada generates a total economic impact of $85.2 billion [12] - The decline in visitors has led to a 27,000 room-night decrease in the second quarter, significantly affecting major gaming companies [10] - Las Vegas visitor volumes have consistently declined each month in 2025, with a 7.3% decrease in the first half compared to 2024 [12] Affordability Concerns - Mayor Berkley highlighted that Las Vegas has strayed from its historical value proposition, with rising costs alienating potential visitors [6][8] - Resort fees now range from $44 to $57 per night, and parking fees have increased significantly, impacting visitor spending behavior [8] - In response to criticism, some properties have begun offering value-focused promotions to attract visitors [11] Future Outlook - Despite current challenges, there is optimism for recovery, with upcoming events like the Formula 1 Grand Prix expected to drive tourism growth [13] - The Las Vegas Convention and Visitors Authority has invested $3.25 million in marketing campaigns targeting international markets [13]

Core Viewpoint - Galaxy Entertainment reported a mixed performance in 2Q25, with net revenue growth but lower-than-expected EBITDA, leading to revised earnings forecasts and a lowered target price while maintaining a Buy rating [1][4]. Financial Performance - 2Q25 net revenue reached HK$12.0 billion, reflecting an 8% quarter-over-quarter increase and a 10% year-over-year increase [1]. - Normalized adjusted EBITDA was HK$3.2 billion, showing a 7% increase QoQ but a 1% decrease YoY, attributed to a lower mass market hold rate [1]. - Total gross gaming revenue, mass market revenue, slot machine revenue, and VIP rolling chip volume recovered to 82%, 130%, 138%, and 31% of 2Q19 levels, respectively [2]. - EBITDA recovery was at 79% of the 2019 level [2]. Dividend and Cash Position - As of June 30, 2025, the company's net cash stood at HK$30.3 billion [4]. - The interim dividend is set at HK$0.70 per share, with a payout ratio increased to 58% from 50% in 2024 [4]. New Developments - The Capella Hotel, a 95-all-suite project, has been in trial operation since May, with full opening expected soon [3]. - Construction of Phase 4 of Galaxy Macau is progressing, with completion scheduled for 2027, featuring high-end hotel brands, a theater with approximately 5,000 seats, green gardens, a water resort deck, and a casino [3]. Investment Outlook - The target price has been revised down from HK$55 to HK$50, indicating a 24% upside potential, while the Buy rating is maintained due to the resilience of the gaming business and long-term growth potential [1][4].

Core Viewpoint - Golden Entertainment reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.10 per share, but showing improvement from a loss of $0.37 per share a year ago [1][2] Financial Performance - The company posted revenues of $160.84 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.91% and down from $174.05 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once [2] Stock Performance - Golden Entertainment shares have declined approximately 18.2% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $170.28 million, and for the current fiscal year, it is $0.58 on revenues of $666.38 million [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable [6] Industry Context - The Gaming industry, to which Golden Entertainment belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Snail, Inc. (SNAL), is expected to report a quarterly loss of $0.11 per share, indicating a year-over-year change of -120% [9]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Golden Entertainment despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Golden Entertainment is expected to report quarterly earnings of $0.10 per share, reflecting a year-over-year increase of +127%, while revenues are projected to be $162.32 million, down 6.7% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.54% lower in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a negative Earnings ESP of -41.85% for Golden Entertainment, suggesting analysts have become bearish on the company's earnings outlook [11][10]. Historical Performance - In the last reported quarter, Golden Entertainment was expected to post earnings of $0.22 per share but only achieved $0.10, resulting in a surprise of -54.55%. Over the last four quarters, the company has only beaten consensus EPS estimates once [12][13]. Investment Considerations - Despite the negative indicators, the potential for stock movement is influenced by various factors beyond earnings results, including unforeseen catalysts and overall market conditions [14][16].