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Boyd Gaming posts $7.3 million loss in 1st quarter

LAS VEGAS (AP) -- Boyd Gaming Corp. said Wednesday it posted a $7.3 million first-quarter loss, reversing a profit in the year-ago period, but its adjusted results still managed to beat Wall Street predictions and the company's shares soared.

In afternoon trading, Boyd shares jumped $2.02, or 23 percent, to $10.97 after peaking at $10.99 earlier in the day and marking their highest point in more than two years.

For the quarter ended March 31, the Las Vegas-based casino operator's loss amounted to 8 cents per share and compared with a profit of $5.9 million, or 7 cents per share, in the same quarter of 2012.

Excluding preopening costs and other one-time items, Boyd posted an adjusted profit of 1 cent per share.

Revenue rose 16 percent to $737 million from $633.1 million.

Analysts, on average, expected a loss of 7 cents per share on $734.3 million in revenue, according to FactSet.

Revenue at Boyd's wholly owned business jumped 25 percent to $569.9 million. The company operates gaming properties in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana and Mississippi.

Revenue at Borgata, the company's 50 percent joint venture, fell 6 percent to $165.6 million. Boyd said Borgata "significantly outperformed" its rivals in Atlantic City, N.J., as the region continues to recover from Superstorm Sandy last fall.

Total costs and expenses jumped 18 percent to $656.5 million, as gaming expenses increased 20 percent to $298.4 million.