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Boyd (BYD) Down 6.9% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Boyd Gaming (BYD - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Boyd due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Boyd Gaming Q1 Earnings Top Estimates, Improve Y/Y

Boyd Gaming reported decent first-quarter 2021 results, with the top and the bottom line beating the Zacks Consensus Estimate. Both the metrics not only surpassed the Zacks Consensus Estimate for the fourth straight quarter but also increased on a year-over-year basis.

In this Regard, president and chief executive officer of Boyd Gaming, Keith Smith, said: “This was an exceptional quarter for our Company, as we achieved the strongest EBITDAR and margin performances in our history.  As economic conditions improve and COVID vaccinations continue to roll out, we are seeing increased visitation and growing spend-per-visit across every customer segment.”

Q1 Earnings and Revenues

In the quarter under review, adjusted earnings per share came in at 93 cents, topping the Zacks Consensus Estimate of 44 cents by 111.4%. The metric improved significantly from prior-year quarter’s loss of 2 cents per share.

Total revenues of $753.3 million beat the consensus mark of $666.5 million by 13%. Also, the top line increased 10.7% on a year-over-year basis.

Total adjusted EBITDAR during the reported quarter came in at $292.6 million, up 102.6% year over year. However, company-wide margins were at 38.8%, up significantly from 21.2% in the year-ago quarter.

Segmental Details

Las Vegas Locals

During the first quarter of 2021, revenues at the segment amounted to $182.4 million, up 0.9% year over year. Notably, the segment’s adjusted EBITDAR came in at $90.6 million, up 93.8% from the year-ago quarter’s reported figure. During the quarter under review, operating margin rose more than 2,382 basis points (bps) year over year to 49.7%.

Downtown Las Vegas

During the first quarter, revenues at the segment declined 60.4% from the prior-year quarter’s figure to $21.4 million. Adjusted EBITDAR came in at $2.4 million, down 75.5% from $10 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 first quarter, revenues at the segment increased 23.3% year over year to $549.5 million. However, adjusted EBITDAR amounted to $218.1 million, up 106.1% year over year. Meanwhile, operating margin during the quarter rose approximately 1,596 bps year over year to 39.7% on solid operating performance.

Other Financial Details

As of Mar 31, 2021, the company had cash on hand of $730.9 million compared with $519.2 million as on Dec 31, 2020. Meanwhile, total debt during the first quarter amounted to $3.94 billion compared with $3.95 billion in fourth-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 59.81% due to these changes.

VGM Scores

Currently, Boyd has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. 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 #1 (Strong Buy). We expect an above average return from the stock in the next few months.


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