Back to top

Image: Bigstock

Factors Likely to Influence Boyd Gaming's (BYD) Q1 Earnings

Read MoreHide Full Article

Boyd Gaming Corporation (BYD - Free Report) is scheduled to report first-quarter 2019 results on Apr 25. In the last reported quarter, the company reported in line earnings. However, the bottom line outpaced the Zacks Consensus Estimate in two of the trailing four quarters, the average beat being 7.5%.

How are Estimates Faring?

The Zacks Consensus Estimate for first-quarter earnings is pegged at 43 cents, which moved south by a penny over the past 7 days. This reflects a 10.3% gain from 39 cents registered in the year-ago quarter. For quarterly revenues, the consensus mark stands at $827.4 million, indicating growth of 36.5% from the year-ago reported figure.

Let’s find out the factors that are likely to shape Boyd Gaming’s results in the to-be-reported quarter.  

Factors at Play

Boyd Gaming results in the first quarter are likely to be driven by Las Vegas segment’s robust performance. Meanwhile, the company’s loyalty program, which was relaunched last year, has been driving Las Vegas local business. Boyd Gaming has also been generating EBITDAR growth for quite some time. In fourth-quarter 2018, the company reported EBITDAR growth for the 15th quarter out of the last 16 quarters. Its Las Vegas achieved 15th successive quarter of EBITDAR growth as well. The momentum is likely to continue in the quarter to be reported.

Boyd Gaming’s efforts to expand portfolio by strengthening current operations and growing through capital investment as well as other strategic measures are also likely to boost the company’s results in the first quarter. Its recent acquisitions of Valley Forge Casino Resort and the Pinnacle Assets are added positives.

Boyd Gaming Corporation Price and EPS Surprise

Our Quantitative Model Suggests a Beat

According to our quantitative model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a fair chance of beating estimates. Meanwhile, stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Boyd Gaming has a Zacks Rank #3 and an Earnings ESP of +6.56%, a combination that increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Here are some companies from the same sector that are poised for an earnings beat in the upcoming releases:

Churchill Downs Incorporated (CHDN - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank of 3.

Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +1.78% and a Zacks Rank #3.

Red Rock Resorts, Inc. (RRR - Free Report) has an Earnings ESP of +4.94% and a Zacks Rank #3.  

Is Your Investment Advisor Fumbling Your Financial Future?

See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”

Click to get it free >>

Published in