Dropoffs in Las Vegas visitation and gambling revenue prompted Truist Securities Barry Jonas to trim three percent from his cash-flow projection for Boyd Gaming’s second quarter. He also lowered his price target on Boyd shares from $92 apiece to $85.
However, Jonas maintained a Buy recommendation on the stock, trading at $66.25 per share at the time. His findings were published in a March 31 investor note.
Jonas observed that Las Vegas visitation was down 12 percent in March and casino revenue was off by three percent, once baccarat was excluded. Performance by locals casinos, of which Boyd is a significant operator, was flat with February 2024.
“While we expected a softer February,” Jonas wrote, “underlying Vegas trends remain mostly positive (for now) and we expect to see improvements in March.”
Slots were outperformed by table games in locals casinos. Slot machine winnings dipped one percent on three percent less coin-in, but table games rose five percent despite nine percent less wagering.
All but one of Boyd’s Las Vegas jurisdictions ceded revenue in February. North Las Vegas was down three percent, the Boulder Strip slipped one percent, and downtown Las Vegas fell five percent. Miscellaneous Clark County casinos were up one percent.
Air traffic slid eight percent, but drive-in customers were two percent higher. However, weekend hotel occupancy fell four percent and midweek numbers dipped three percent.
Jonas concluded by noting that “Vegas trends remain positive,” even though occupancy was on a two percent downward trajectory.
