Best of the Rest – Las Vegas Advisor

“Solid” was Wall Street‘s consensus on 3Q25 at Station Casinos. The company came in slightly under Deutsche Bank‘s targets but analyst Steven Pizzella still seemed pleased. Revenue was $486.5 million and Station was noted to have weathered construction upheavals at several properties, as it upgrades its product. Restaurant business was good, with F&B revenues hopping 2.5%. Thanks to room disruption at Green Valley Ranch, hotel revenues sagged 8%. And, for the first time, we heard that debility on the Las Vegas Strip might start dampening locals-casino results.

Management also unveiled details of the Durango Resort third (!) phase. It will, primarily, add locals-friendly amenities that were missing from Phases I & II (not that it hurt the results). In addition to more dining, a bowling alley (36 lanes) and cineplex will be plugged into the Durango formula. Another 400 slot machines are coming, as “multiple entertainment venues.” It will take a year and a half (until July 2027), as well as $385 million, to make it happen but it’s unlikely to dent Durango’s supremacy in the market. Quite the contrary, according to Station execs. Pizzella also liked the continued population growth in the Las Vegas Valley, as well as “a well articulated and manicured organic project pipeline largely isolated from competitive new supply.“

Station came in ahead of Truist Securities’ benchmarks, by contrast, and analyst Barry Jonas observed that the company saw best-ever third-quarter revenues and cash flow ($191 million). He added that Station’s brain trust “remains very pleased with Durango, as the property continues to drive incremental play from new and existing customers.” Bright spots going into the 4Q25 were normalized sports betting hold, as well as strength in both slot and table play. Jonas noted that the Durango prioritization pushed Inspirada Station and the Cactus Lane project (next door to South Point) onto the back burner. Again. Nor is more hotel-room capacity at Durango off the table. As for the North Fork Rancheria project in California, it’s on track to open in a year.

Company brass stated their happiness with the initial pair of Station-branded taverns in Las Vegas, although Golden Entertainment CEO (and Fertitta clan in-law) Blake Sartini‘s reaction was not recorded. Five more watering holes are planned for next year, especially now that Station is capturing a younger cohort and penetrating underserved (if such a thing is possible) corners of the Vegas Valley. In its core business, meanwhile, Station is whupping the Strip’s room rates by 25%. Color us impressed.

J.P. Morgan analyst Daniel Politzer observed that Station “has a lot going on right now re: construction projects/disruption, but we have confidence [it] will generate solid high-teens returns on these investments over time.” He projected that the impact of construction upheavals would be slightly less than anticipated ($20 million instead of $23 million), preponderantly at Green Valley Ranch. The latter will see at $200 million convention center re-do, while Sunset Station is slated for $53 million in facelifts.

Lastly, Jefferies Equity Research analyst David Katz reported that “the long-term growth program remains on track, albeit with near-term earnings disruption and leverage, which could temper near-term upside in the shares.” Hotel outperformance drove a modest beat of his estimates. Katz added that a new Durango parking garage and high-limit slot room should be on line next month. He also noted that management scored a $300 million tax windfall from the acceleration of depreciation schedules. Some folks have all the luck.

Wall Street’s message regarding 3Q25 at Boyd Gaming boiled down to “solid quarter and consistent messaging.” That’s Boyd, all right. It may not light your hair on fire but it’s a steady performer. Katz pointed to Boyd’s magazine of dry powder, saying the company could “become more prominent in the near term as regional asset transactions become more active, given its financial capabilities. Boyd is best positioned to play offense among a sector where defense is more the focus.” In fact, Boyd outshot Katz’s expectations for revenue, bringing in $1 billion to his anticipated $848 million. Cash flow $322 million where Katz was prepared for $300 million. All that despite Las Vegas being merely as expected.

Even so, Katz warned of soft tourism demand for Boyd’s Downtown and off-Strip product. iGaming was a powerhouse, with $166 million of revenue, though. “With the FanDuel sale completed, the context for investing in growth becomes more prominent, with the market becoming more active, in our view,” wrote Katz. He concluded by observing that Boyd is favorably positioned, particularly when compared to most of Big Gaming.

Before leaving Boyd, we shed a tear for Eastside Cannery, slated for demolition. It’s a well-designed casino that doesn’t deserve this sad fate. Boyd was so threatened by the Dollar Bills, (William Wortman and William Paulos) that it overindulged itself, buying out Cannery Casino Resorts, even though E-Can was hard by Sam’s Town. The redundancy was not only obvious to everybody except Boyd, it was terminal for E-Can, with a Covid-19 closure being the final nail in the coffin. Eastside Cannery never reopened and now awaits a date with the wrecking ball. Boyd has no one to blame for this but itself.

Gridion Grumbles: Congratulations to the hard-working Las Vegas Raiders for hanging tough yesterday. The Silver & Black came within a two-point-conversion attempt of victory in overtime against the Jacksonville Jaguars. Coach Pete Carroll made a gutsy call at the end and no discredit should reflect on him by going for the win rather than playing it safe and settling for a tie. The good news is that the Raiders put up 29 points, suggesting that the Geno Smith-led offense is getting it together. The bad news is that the Jaguars scored 30, showing how porous the vaunted Raider defense is. Matters don’t get easier, as the Silver & Black travel to Colorado for an uphill battle against the Denver Broncos. Can the Raiders get an intra-divisional victory? It doesn’t appear likely.