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Boyd (BYD) Up 22.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Boyd Gaming (BYD - Free Report) . Shares have added about 22.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Boyd due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Boyd Gaming reported third-quarter 2020 results, wherein the top and the bottom line beat the Zacks Consensus Estimate. However, both the metrics declined on a year-over-year basis.
Nonetheless, the company stated that it is making significant progress in terms of operating performances. Moreover, the company along with FanDuel Group rolled out mobile sports betting platforms in Illinois and Iowa, thereby expanding its reach to more than 30 million users nationwide. Notably, the company intends to capitalize on the growth opportunity with interactive gaming and mobile sports betting.
Q3 Earnings and Revenues
In the quarter under review, adjusted earnings per share came in at 38 cents, topping the Zacks Consensus Estimate of 17 cents by 123.5%. However, the metric declined 2.6% from prior-year earnings of 39 cents per share.
Total revenues of $652.2 million beat the consensus mark of $610 million by 43%. However, the top line declined 20.4% on a year-over-year basis.
Total adjusted EBITDAR during the reported quarter came in at $238.8 million, increasing 12% year over year.
Segmental Details
Las Vegas Locals
During the third quarter of 2020, revenues at this segment amounted to $171.1 million, down 19.8% year over year. However, the segment’s adjusted EBITDAR came in at $78.9 million compared with $64.1 million in the year-ago quarter. During the quarter under review, operating margin rose more than 1,600 basis points (bps) year over year to 46.1%.
Downtown Las Vegas
During the third quarter, revenues at the segment declined 71.1% from the prior-year quarter’s figure to $17.5 million. Adjusted EBITDAR came in at ($1.5) million against $11.9 million reported in the year-ago quarter. The decline can primarily be attributed to travel restrictions in Hawaii along with reduced visitation to Las Vegas.
Midwest and South Segment
During the third quarter, revenues at this segment fell 15% year over year to $463.6 million. However, adjusted EBITDAR came in at $182.5 million, compared with $156.2 million in the year-ago quarter. Meanwhile, operating margin during the quarter rose approximately 1,100 bps year over year to 39.4% on solid operating performance, partially offset by the impact of property closures at Hurricanes Laura and Sally.
Other Financial Details
As of Sep 30, 2020, the company had cash on hand of $506 million, compared with $1.31 billion as on Jun 30, 2020. Meanwhile, total debt during the third quarter amounted to $4.04 billion, compared with $4.98 billion as reported in second-quarter 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 149.22% due to these changes.
VGM Scores
At this time, Boyd has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Boyd has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Boyd (BYD) Up 22.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Boyd Gaming (BYD - Free Report) . Shares have added about 22.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Boyd due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Boyd Gaming Q3 Earnings Beat Estimates, Decline Y/Y
Boyd Gaming reported third-quarter 2020 results, wherein the top and the bottom line beat the Zacks Consensus Estimate. However, both the metrics declined on a year-over-year basis.
Nonetheless, the company stated that it is making significant progress in terms of operating performances. Moreover, the company along with FanDuel Group rolled out mobile sports betting platforms in Illinois and Iowa, thereby expanding its reach to more than 30 million users nationwide. Notably, the company intends to capitalize on the growth opportunity with interactive gaming and mobile sports betting.
Q3 Earnings and Revenues
In the quarter under review, adjusted earnings per share came in at 38 cents, topping the Zacks Consensus Estimate of 17 cents by 123.5%. However, the metric declined 2.6% from prior-year earnings of 39 cents per share.
Total revenues of $652.2 million beat the consensus mark of $610 million by 43%. However, the top line declined 20.4% on a year-over-year basis.
Total adjusted EBITDAR during the reported quarter came in at $238.8 million, increasing 12% year over year.
Segmental Details
Las Vegas Locals
During the third quarter of 2020, revenues at this segment amounted to $171.1 million, down 19.8% year over year. However, the segment’s adjusted EBITDAR came in at $78.9 million compared with $64.1 million in the year-ago quarter. During the quarter under review, operating margin rose more than 1,600 basis points (bps) year over year to 46.1%.
Downtown Las Vegas
During the third quarter, revenues at the segment declined 71.1% from the prior-year quarter’s figure to $17.5 million. Adjusted EBITDAR came in at ($1.5) million against $11.9 million reported in the year-ago quarter. The decline can primarily be attributed to travel restrictions in Hawaii along with reduced visitation to Las Vegas.
Midwest and South Segment
During the third quarter, revenues at this segment fell 15% year over year to $463.6 million. However, adjusted EBITDAR came in at $182.5 million, compared with $156.2 million in the year-ago quarter. Meanwhile, operating margin during the quarter rose approximately 1,100 bps year over year to 39.4% on solid operating performance, partially offset by the impact of property closures at Hurricanes Laura and Sally.
Other Financial Details
As of Sep 30, 2020, the company had cash on hand of $506 million, compared with $1.31 billion as on Jun 30, 2020. Meanwhile, total debt during the third quarter amounted to $4.04 billion, compared with $4.98 billion as reported in second-quarter 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 149.22% due to these changes.
VGM Scores
At this time, Boyd has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Boyd has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.