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Boyd Gaming (BYD) Beats Q2 Earnings & Revenue Estimates

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Boyd Gaming Corporation (BYD - Free Report) delivered robust second-quarter 2018 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate for the second consecutive quarter. Adjusted earnings per share of 38 cents outpaced the consensus mark of 33 cents and also increased nearly 46.2% year over year.

The company’s revenues came in at $616.8 million, faring better than the estimate of $604 million. Moreover, the company’s top-line inched up 2.1% year over year. The increase in revenues can primarily be attributed to year-over-year gain in Las Vegas Locals, Downtown Las Vegas and Midwest and South segments.

The company also stated that it is in progress of completing the buyout of five new properties in the Midwest and Northeast.

Segmental Details

Las Vegas Locals

The segment revenues came in at $220 million, up 1.5% year over year. Moreover, the segment’s EBITDA increased to $70.2 million, up from $63.3 million in the year-ago quarter. Notably, EBITDA rose for the 13th consecutive quarter driven by rise in revenues as well as adjusted EBITDA and operating margins.

Downtown Las Vegas

The segment revenues increased 2.7% to $61.2 million. Adjusted EBITDA rose to $13.5 million from $12.5 million due to increase in visitation throughout the downtown area. This was partially overshadowed by considerably higher fuel costs at the company's Hawaiian charter service.

Midwest and South

Revenues were up 2.4% to $335.6 million. Adjusted EBITDA came in at $98.5 million, up 5.1% year over year. Modifications to marketing programs, operational competences as well as healthy economic conditions through the company's regional markets drove segment revenues and EBITDA.

Boyd Gaming Corporation Price, Consensus and EPS Surprise

 

Other Financial Details

As of Jun 30, 2018, Boyd Gaming had cash on hand of $632.8 million. During the first and second-quarter returned to shareholder more than $42 million through dividend payments and share repurchases. The company has $30 million remaining under its current authorization. In 2017, the company had repurchased 1.2 million of shares.

Boyd Gaming, which shares space with Caesars Entertainment Corporation (CZR - Free Report) , carries a Zacks Rank #3 (Hold).

Key Picks

Better-ranked stocks in the same space include Penn National Gaming, Inc. (PENN - Free Report) and Red Rock Resorts, Inc. (RRR - Free Report) . Penn National Gaming sports a Zacks Rank #1 (Strong Buy), while Red Rock Resorts carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Penn National Gaming has an impressive long-term earnings growth rate of 28.3%.

Red Rock Resorts reported better-than-expected earnings in the trailing four quarters, with an average of 32.7%.

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