July 30 (Bloomberg) -- Boyd Gaming Corp., owner of 22 casinos and racetracks across the U.S., rose the most in more than three months as an improving market for off-Strip Las Vegas betting helped the company report a surprise quarterly profit.
The shares rose 18 percent to $12.86 at the close in New York, for the biggest jump since April 24. The stock has almost doubled this year .
Revenue in the locals market, which targets Las Vegas residents, rose slightly during the second quarter, the first such growth for Boyd since the first three months of last year, according to Bloomberg Industries. Adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, advanced 12 percent, according to a statement.
“We’re seeing modest growth in a market that has not seen growth,” Chief Executive Officer Keith Smith said on an analyst conference call hosted by the Las Vegas-based company. “Auto sales are up, taxable sales are up. We expect anytime for them to start to spend more money on our business.”
Boyd broke even in the second quarter after adjusting for items such as the sale of its Dania Jai-Alai facility in Florida. Analysts had forecast a loss of 1 cent, on average, according to data compiled by Bloomberg.
Without adjustments, net income rose to $11.6 million, or 13 cents, compared with $1 million, or 1 cent, a year earlier. Analysts had projected a 5-cent loss.
Total revenue rose 20 percent to $738.7 million during the period. Analysts had forecast sales of $741 million. The results included Peninsula Gaming LLC, acquired in November.
Sales at off-Strip Las Vegas casinos rose to $149.7 million, from $149 million a year earlier, according to the statement.
Boyd’s Las Vegas properties outperformed relative to expectations, Stifel Nicolaus & Co. analyst Steven Wieczynski said in a note today.
“We are particularly encouraged by the Las Vegas locals results,” said Wieczynski, who rates the shares hold. “Management attributed the improved performance to successful marketing initiatives that helped drive top-line results.”
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