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Boyd Gaming (BYD) Rides on Robust Demand for Online Betting
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Boyd Gaming Corporation (BYD - Free Report) continues to benefit from acquisitions, focus on online betting and solid performance by the interactive gaming platform. The company has been gaining from increased traffic from the local and regional customer base. However, high costs are hurting the company’s performance. Let’s delve deeper.
Growth Drivers
Boyd Gaming continues to expand its portfolio by strengthening current operations and growing through capital investment and other strategic measures. The company extensively depends on acquisitions as a strategy to expand its brand presence. It is worth mentioning that in 2019, the company benefited from the acquisitions of Lattner (on Jun 1, 2018), Valley Forge (Sep 17, 2018) and Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park (Oct 15, 2018).
Meanwhile, the Zacks Rank #3 (Hold) company continues to make solid progress with respect to its expansion in Northern California. Currently, it is working on Wilton Rancheria resorts, which is positioned as the closest Class 3 casino to Downtown Sacramento in the South Bay area. The company anticipates opening the property by the second half of 2022.
Meanwhile, Boyd Gaming has been undertaking efforts to expand online betting offerings. One of the notable initiatives by the company has been regarding the legalization of sports gambling. During the fourth quarter of 2021, the company opened FanDuel Sportsbooks at its Louisiana properties and launched mobile sports betting in the region. Going forward, Boyd Gaming remains optimistic about online gaming prospects in Ohio. It expects to launch FanDuel retail and mobile sportsbooks in the state by 2022-end.
Since the outbreak of coronavirus, Boyd Gaming has been witnessing a solid performance by the interactive gaming platform. Thanks to the strategic partnership with FanDuel, the company is optimistic regarding its future in the iGaming industry. Given the growth opportunities with respect to expansion in new markets and digital opportunities in online casino gaming, the company anticipates EBITDAR (from its online operations) to exceed $30 million in 2022.
Image Source: Zacks Investment Research
Shares of the company have gained 3.6% in the past six months, against the industry’s decline of 37.6%.
Concerns
Despite several margin-enhancing initiatives, Boyd Gaming has been grappling with higher expenses across gaming, food and beverage, room and other offerings. The company witnessed high SG&A costs in the fourth quarter of 2021. Total operating costs and expenses in fourth-quarter 2021 increased 26.4% year over year to $663 million. However, Boyd Gaming stated that its team is doing an excellent job in dealing with inflationary pressures.
Crocs flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 36%, on average. Shares of Crocs have declined 12.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 48.6% and 22.1%, respectively, from the year-ago period’s levels.
Cedar Fair sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 16.3%, on average. Shares of Cedar Fair have gained 3.1% in the past year.
The Zacks Consensus Estimate for FUN’s 2022 sales and EPS suggests growth of 32.6% and 612.7%, respectively, from the year-ago period’s levels.
Ralph Lauren flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 94.1%, on average. Shares of Ralph Lauren have decreased17% in the past year.
The Zacks Consensus Estimate for RL’s 2022 sales and EPS suggests growth of 40% and 380.6%, respectively, from the year-ago period’s levels.
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Boyd Gaming (BYD) Rides on Robust Demand for Online Betting
Boyd Gaming Corporation (BYD - Free Report) continues to benefit from acquisitions, focus on online betting and solid performance by the interactive gaming platform. The company has been gaining from increased traffic from the local and regional customer base. However, high costs are hurting the company’s performance. Let’s delve deeper.
Growth Drivers
Boyd Gaming continues to expand its portfolio by strengthening current operations and growing through capital investment and other strategic measures. The company extensively depends on acquisitions as a strategy to expand its brand presence. It is worth mentioning that in 2019, the company benefited from the acquisitions of Lattner (on Jun 1, 2018), Valley Forge (Sep 17, 2018) and Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park (Oct 15, 2018).
Meanwhile, the Zacks Rank #3 (Hold) company continues to make solid progress with respect to its expansion in Northern California. Currently, it is working on Wilton Rancheria resorts, which is positioned as the closest Class 3 casino to Downtown Sacramento in the South Bay area. The company anticipates opening the property by the second half of 2022.
Meanwhile, Boyd Gaming has been undertaking efforts to expand online betting offerings. One of the notable initiatives by the company has been regarding the legalization of sports gambling. During the fourth quarter of 2021, the company opened FanDuel Sportsbooks at its Louisiana properties and launched mobile sports betting in the region. Going forward, Boyd Gaming remains optimistic about online gaming prospects in Ohio. It expects to launch FanDuel retail and mobile sportsbooks in the state by 2022-end.
Since the outbreak of coronavirus, Boyd Gaming has been witnessing a solid performance by the interactive gaming platform. Thanks to the strategic partnership with FanDuel, the company is optimistic regarding its future in the iGaming industry. Given the growth opportunities with respect to expansion in new markets and digital opportunities in online casino gaming, the company anticipates EBITDAR (from its online operations) to exceed $30 million in 2022.
Image Source: Zacks Investment Research
Shares of the company have gained 3.6% in the past six months, against the industry’s decline of 37.6%.
Concerns
Despite several margin-enhancing initiatives, Boyd Gaming has been grappling with higher expenses across gaming, food and beverage, room and other offerings. The company witnessed high SG&A costs in the fourth quarter of 2021. Total operating costs and expenses in fourth-quarter 2021 increased 26.4% year over year to $663 million. However, Boyd Gaming stated that its team is doing an excellent job in dealing with inflationary pressures.
Key Picks
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Crocs, Inc. (CROX - Free Report) , Cedar Fair, L.P. (FUN - Free Report) and Ralph Lauren Corporation (RL - Free Report) .
Crocs flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 36%, on average. Shares of Crocs have declined 12.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 48.6% and 22.1%, respectively, from the year-ago period’s levels.
Cedar Fair sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 16.3%, on average. Shares of Cedar Fair have gained 3.1% in the past year.
The Zacks Consensus Estimate for FUN’s 2022 sales and EPS suggests growth of 32.6% and 612.7%, respectively, from the year-ago period’s levels.
Ralph Lauren flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 94.1%, on average. Shares of Ralph Lauren have decreased17% in the past year.
The Zacks Consensus Estimate for RL’s 2022 sales and EPS suggests growth of 40% and 380.6%, respectively, from the year-ago period’s levels.