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Boyd Gaming (BYD) Q4 Earnings Top Estimates, Decline Y/Y

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Boyd Gaming Corporation (BYD - Free Report) reported decent fourth-quarter 2020 results, with the top and the bottom line beating the Zacks Consensus Estimate. Both the metrics surpassed the Zacks Consensus Estimate for the third straight quarter. However, the metrics declined on a year-over-year basis. Following the announcements, the company’s shares dropped 2% during after-hour trading session on Feb 16.

President and chief executive officer of Boyd Gaming, Keith Smith, stated: “We achieved record Companywide operating margins for the second consecutive quarter, as nine properties nationwide set fourth-quarter EBITDAR records. In the Midwest & South, we delivered another record EBITDAR performance during the quarter, despite the closures of Par-A-Dice and Valley Forge due to state mandates.”

Q4 Earnings and Revenues

In the quarter under review, adjusted earnings per share came in at 46 cents, topping the Zacks Consensus Estimate of 33 cents by 39.4%. However, the metric declined 8% from prior-year quarter’s earnings of 50 cents per share.

Boyd Gaming Corporation Price, Consensus and EPS Surprise

 

Boyd Gaming Corporation Price, Consensus and EPS Surprise

Boyd Gaming Corporation price-consensus-eps-surprise-chart | Boyd Gaming Corporation Quote

 

Total revenues of $635.9 million beat the consensus mark of $615 million by 3.5%. However, the top line declined 23.7% on a year-over-year basis.

Total adjusted EBITDAR during the reported quarter came in at $210.5 million, down 7.5% year over year. However, company-wide margins came in at 33.1%, up approximately 580 basis points year over year.

Segmental Details

Las Vegas Locals

During the fourth quarter of 2020, revenues in the segment amounted to $161.5 million, down 27.9% year over year. However, the segment’s adjusted EBITDAR came in at $70.2 million, down 4.2% from the year-ago quarter’s reported figure. During the quarter under review, operating margin rose more than 1,300 basis points (bps) year over year to 46.3%.

Downtown Las Vegas

During the fourth quarter, revenues in the segment declined 73.9% from the prior-year quarter’s figure to $18.2 million. Adjusted EBITDAR came in at ($0.2) million against $19.6 million reported in the year-ago quarter. The decline can primarily be attributed to weakness in tourism in the southern Nevada market.

Midwest and South Segment

During the third quarter, revenues in the segment fell 15.5% year over year to $456.2 million. However, adjusted EBITDAR amounted to $159.5 million, up 1.3% year over year. Meanwhile, operating margin during the quarter rose approximately 580 bps year over year to 39.435% on solid operating performance.

Other Financial Details

As of Dec 31, 2020, the company had cash on hand of $519.2 million compared with $506 million as on Jun 30, 2020. Meanwhile, total debt during the third quarter amounted to $3.95 billion compared with $4.04 billion as reported in third-quarter 2020.

Zacks Rank & Key Picks

Boyd Gaming currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks worth considering in the same space include Churchill Downs Incorporated (CHDN - Free Report) , Corsair Gaming, Inc. (CRSR - Free Report) and Golden Entertainment, Inc. (GDEN - Free Report) . All these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Churchill Downs earnings in 2021 are expected to witness growth of 699.2%.

Corsair Gaming has reported better-than expected earnings in the preceding two quarters.

Golden Entertainment earnings in 2021 are expected to witness growth of 93.4%.

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