UPDATE 2-Boyd Gaming profit misses forecasts, shares fall

* Adjusted EPS $0.05 vs. Wall Street view $0.10

* Rev fell 5.9 pct to $578.4 mln; street view $588.05 mln

* Shares fall 6.1 percent (Adds analyst comment, share price, byline, previous dateline NEW YORK)

By Deena Beasley

LOS ANGELES, Aug 3 (Reuters) - Casino operator Boyd Gaming Corp (BYD.N) posted a 73 percent drop in quarterly profit on Tuesday and fell short of Wall Street's expectations, citing poor performance in Las Vegas, the U.S. Midwest and South.

Its shares fell 6 percent.

The Las Vegas-based company reported second-quarter net income of $3.4 million, or 4 cents a share, down from $12.8 million, or 15 cents per share, a year earlier.

Excluding special items, the profit was 5 cents a share, far short of the average analyst estimate of 10 cents per share, according to Thomson Reuters I/B/E/S.

Net revenue at Boyd, which runs Las Vegas properties that cater mainly to local residents rather than tourists, fell 5.9 percent to $578.4 million. Analysts had expected revenue of $588 million.

In the Las Vegas locals market, the rate of decline in earnings before interest, taxes, depreciation and amortization rose to 16.2 percent from 10.8 percent, according to JP Morgan analyst Joseph Greff.

He rates the stock "underweight," citing competition to Boyd's Atlantic City operation from new gambling resorts in Pennsylvania, West Virginia and Delaware, an anticipated weak recovery in the Las Vegas locals market, and stagnant regional gaming trends.

The company, which owns and operates 16 casinos in six states, said last week it had given up on efforts to buy assets held by Station Casinos Inc [STN.UL], which is reorganizing in bankruptcy court.

Shares of Boyd were down 55 cents at $8.46 in early trading on the New York Stock Exchange. (Reporting by Deena Beasley. Additional reporting by Franklin Paul in New York. Editing by Robert MacMillan)