Dallas, Texas 02/05/2014 (FINANCIALSTRENDS) – Boyd Gaming Corporation (NYSE:BYD) on 30th January lowered its guidance for its 4Q operations ending 31st December. The firm reported that in 4Q its gaming operations at the caisno in Borgata- Atlantic City will report earnings which would be in the range of $15 to $17 million, which is significantly lesser than its previous forecast of $22 to $24 million. The reasons for the lowering of the estimates have been linked to two main reasons. The first is the unduly long and harsh winter which extended into two weekends and a significantly low hold percentage. For the full year, the new guidance pegs earnings before tax to come in the range of $105 to $110 million.
Explaning the reasons for the reduction in its 4Q guidance, Boyd Gaming Corporation (NYSE:BYD) Chief Executive Officer Keith Smith has been quoted to have said that, “Despite short-term challenges at Borgata, we remain optimistic about the overall direction of our business. We are confident that the investments and refinements we have made throughout the business, our improving financial position, and our leadership position in real-money online gaming will fuel further momentum in our business in 2014 and beyond.”
The management of Boyd Gaming Corporation (NYSE:BYD) believe that the 4Q operations were buffeted by over all slow business during the traditionally active holiday season due to prevailing cold weather conditions in the Mid West and Peninsula region. The feel the performance of the resort is in line with their own expectations and expects its “Wholly-owned Adjusted EBITDA to come in at (after a favourable tax rebate) $9.3 million.
On the back of the candid update, the stock market rallied behind the stock of Boyd Gaming Corporation (NYSE:BYD) and through the trading last week, the stock ended up posting a 7.03 percent gains and is trading 60 percent above its 52 week low price point.