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Boyd Gaming (BYD) Benefits From Online Betting Expansion
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Shares of Boyd Gaming Corporation (BYD - Free Report) have soared 105.3% in the past year, compared with the industry’s and the S&P 500’s growth of 10.6% and 32.3%, respectively. The company is benefiting from expansion of online betting offerings and the FanDuel partnership. Initiatives to strengthen current operations and growth through capital investment and other strategic measures bode well. Let’s delve deeper.
Key Growth Drivers
The Zacks Rank #2 (Buy) company continues to gain from sports betting expansion efforts. During the second quarter of 2020, the company expanded its partnership with FanDuel Group, which includes retail sports books at seven Boyd properties, mobile sports betting apps in Pennsylvania and Indiana, and the online gaming site in Pennsylvania. During the third quarter of 2020, Boyd Gaming continued to expand its partnership with FanDuel Group, thereby launching mobile sports betting products in Illinois and Iowa. Going forward, the company remains optimistic about online gaming prospects in Louisiana. It expects to launch FanDuel retail and mobile sports books in the state by 2021-end. Given a high promotional capital-intensive and competitive landscape, we believe that partnership with FanDuel is likely to drive positive cash flows in the days ahead.
Meanwhile, the company continues to make solid progress with respect to its expansion in Northern California. Currently, the company is working on Wilton Rancheria resorts, which is positioned as the closest Class 3 casino to Downtown Sacramento in the South Bay area. It expects to open the property by the second half of 2022. Boyd Gaming reportedly has made substantial progress with regards to the construction of Sky River Casino site. The resort comprises 2,000 slot machines, 80 table games, and 12 food and beverage offerings. With steel in ground and member recruitments underway, the company expects to open doors by fourth-quarter 2022.
With easing of operating restrictions and deployment of vaccines, the company continues to be optimistic for growth in its destination business. Although guest counts from destination travelers remain below the pre-pandemic levels, higher rate of hotel reservations and a pent-up demand for non-gaming amenities are suggesting recovery. Going forward, the company expects to benefit from strengthening of consumer confidence, limited entertainment options and disciplined operating strategy.
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Growth Projections
The Zacks Consensus Estimate for 2021 earnings per share has moved up by 44.4% in the past 60 days to $4.68.
The consensus mark for 2022 earnings has moved up 26.3% in the past 60 days to $4.42 per share. The company has an impressive long-term earnings growth rate of 40.8%.
Accel Entertainment, Inc. (ACEL - Free Report) has a Zacks Rank #2 and a projected 2021 earnings growth rate of 957.1%.
Century Casinos, Inc. (CNTY - Free Report) carries a Zacks Rank #2. Its bottom line has outperformed the Zacks Consensus Estimate in the preceding three quarters.
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Boyd Gaming (BYD) Benefits From Online Betting Expansion
Shares of Boyd Gaming Corporation (BYD - Free Report) have soared 105.3% in the past year, compared with the industry’s and the S&P 500’s growth of 10.6% and 32.3%, respectively. The company is benefiting from expansion of online betting offerings and the FanDuel partnership. Initiatives to strengthen current operations and growth through capital investment and other strategic measures bode well. Let’s delve deeper.
Key Growth Drivers
The Zacks Rank #2 (Buy) company continues to gain from sports betting expansion efforts. During the second quarter of 2020, the company expanded its partnership with FanDuel Group, which includes retail sports books at seven Boyd properties, mobile sports betting apps in Pennsylvania and Indiana, and the online gaming site in Pennsylvania. During the third quarter of 2020, Boyd Gaming continued to expand its partnership with FanDuel Group, thereby launching mobile sports betting products in Illinois and Iowa. Going forward, the company remains optimistic about online gaming prospects in Louisiana. It expects to launch FanDuel retail and mobile sports books in the state by 2021-end. Given a high promotional capital-intensive and competitive landscape, we believe that partnership with FanDuel is likely to drive positive cash flows in the days ahead.
Meanwhile, the company continues to make solid progress with respect to its expansion in Northern California. Currently, the company is working on Wilton Rancheria resorts, which is positioned as the closest Class 3 casino to Downtown Sacramento in the South Bay area. It expects to open the property by the second half of 2022. Boyd Gaming reportedly has made substantial progress with regards to the construction of Sky River Casino site. The resort comprises 2,000 slot machines, 80 table games, and 12 food and beverage offerings. With steel in ground and member recruitments underway, the company expects to open doors by fourth-quarter 2022.
With easing of operating restrictions and deployment of vaccines, the company continues to be optimistic for growth in its destination business. Although guest counts from destination travelers remain below the pre-pandemic levels, higher rate of hotel reservations and a pent-up demand for non-gaming amenities are suggesting recovery. Going forward, the company expects to benefit from strengthening of consumer confidence, limited entertainment options and disciplined operating strategy.
Growth Projections
The Zacks Consensus Estimate for 2021 earnings per share has moved up by 44.4% in the past 60 days to $4.68.
The consensus mark for 2022 earnings has moved up 26.3% in the past 60 days to $4.42 per share. The company has an impressive long-term earnings growth rate of 40.8%.
More key Picks in Gaming Space
Golden Entertainment, Inc. (GDEN - Free Report) has a projected 2021 earnings growth rate of 226.4% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Accel Entertainment, Inc. (ACEL - Free Report) has a Zacks Rank #2 and a projected 2021 earnings growth rate of 957.1%.
Century Casinos, Inc. (CNTY - Free Report) carries a Zacks Rank #2. Its bottom line has outperformed the Zacks Consensus Estimate in the preceding three quarters.