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Factors Setting the Tone for Boyd Gaming's (BYD) Q3 Earnings

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Boyd Gaming Corporation (BYD - Free Report) is scheduled to report third-quarter 2021 results on Oct 26, after market close.

In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 67.4% and 325.8%, respectively. Also, the metrics increased significantly on a year-over-year basis.

Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.18 per share, indicating a 210.5% increase from earnings of 38 cents recorded in the year-ago quarter. The consensus mark is pegged at $830.1 million for revenues, suggesting a rise of 27.3% from the year-ago figure.

Let's take a look at how things have shaped up in the quarter.

Factors at Play

Boyd Gaming’s third-quarter 2021 performance is expected to have been driven by its increased focus on online betting, improvement in destination business, pent-up demand for non-gaming amenities, operational strategy, streamlined cost structure, enhanced capabilities and continuous focus on core customers. Also, the company’s rapidly growing business model is expected to have been driven its performance for the quarter to be reported.

Moreover, the company’s robust improvements across all reportable segments sales are likely to have benefited third-quarter 2021 performance. Notably, strategic portfolio expansion, accretive acquisitions and increased focus on online betting are expected to benefit Boyd Gaming’s third-quarter 2021 results.

The Zacks Consensus Estimate for Gaming Revenues for third-quarter 2021 is pegged at $655 million, suggesting an increase of 15.7% year over year. The consensus estimate for Food and Beverage revenues is pegged at $75 million, indicating 31.6% and 93.4% growth sequentially and year over year. Notably, the Zacks Consensus Estimate for Room revenues for the third quarter is pegged at $45.3 million, suggesting a 15.8% sequential rise from $39 million. Also, the estimated figure calls for 68% growth year over year. Meanwhile, the consensus estimate for Other revenues is pegged at $59 million, indicating a 15.7% sequential decline from $69.6 million. Nonetheless, the estimated figure calls for 723% growth year over year.

Boyd Gaming Corporation Price and EPS Surprise Boyd Gaming Corporation Price and EPS Surprise

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

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for Boyd Gaming this time around. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here, as you will see below.

Earnings ESP: Boyd Gaming has an Earnings ESP of -0.85%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Boyd Gaming currently carries a Zacks Rank #2.

Stocks With Favorable Combination

Here are a few companies in the Zacks Gaming industry that have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Accel Entertainment, Inc. (ACEL - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #2.

MGM Resorts International (MGM - Free Report) has an Earnings ESP of +172.22% and a Zacks Rank #3.

Red Rock Resorts, Inc. (RRR - Free Report) has an Earnings ESP of +14.15% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.