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Boyd Gaming (BYD) Q3 Earnings Meet, Revenues Top Estimates

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Boyd Gaming Corporation (BYD - Free Report) posted third-quarter 2018 results, wherein earnings met analysts’ expectations while revenues topped the same.

Adjusted earnings per share of 23 cents were in line with the Zacks Consensus Estimate and increased 4.5% year over year on higher margins.

The company’s revenues were $612.2 million, faring better than estimates of $607.6 million. Moreover, its top line increased 3.5% year over year. The increase in revenues can primarily be attributed to year-over-year gain in Downtown Las Vegas, and Midwest and South segments.

The company also stated that it completed the buyout of five new properties and entered Missouri, Ohio, and Pennsylvania. Shares of Boyd Gaming have gained nearly 7% in the after-hours trading on Oct 25. In a year’s time, the company’s shares have gained 1.7% against the industry’s decline of 24.3%.


Segmental Details

Las Vegas Locals

The segment’s revenues were $208.8 million, down 0.4% year over year. However, the segment’s EBITDA increased to $60 million from $56.3 million in the year-ago quarter. Notably, EBITDA rose for the 14th consecutive quarter, driven by rise in adjusted EBITDA, and operating margins from ongoing marketing and operational refinements as well as continued strength in the regional economy.

Downtown Las Vegas

The segment’s revenues increased 0.7% to $59.2 million. Adjusted EBITDA declined to $11.4 million from $11.6 million, reflecting a loss of approximately $900,000 at the Company's Hawaiian charter service largely due to higher fuel costs.

Midwest and South

Revenues were up 6.6% to $344.3 million. Adjusted EBITDA was $97.8 million, up 8.5% year over year. Modifications to marketing programs, operational competences and healthy economic conditions through the company's regional markets drove the segment’s revenues and EBITDA. Further, acquisition of Valley Forge Casino Resort and Lattner Entertainment contributed to the segment’s performance.

Boyd Gaming Corporation Price, Consensus and EPS Surprise

 

Other Financial Details

As of Sep 30, 2018, Boyd Gaming had cash on hand of $441 million. Total debt amounted to $3.6 billion. Cash and debt balances reflect the company's issuance of $700 million in 6.000% Senior Notes due 2026, completed in June 2018.

For 2018, Boyd Gaming expects total Adjusted EBITDA $660 million to $675 million.

Zacks Rank & Peer Release

Boyd Gaming currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Las Vegas Sands (LVS - Free Report) reported lower-than-expected results in third-quarter 2018.Adjusted earnings per share were 77 cents, flat year over year but below the consensus mark of 84 cents. Net revenues totaled $3.37 billion, missing the consensus mark of $3.41 billion but improving 6.7% on a year-over-year basis.

Upcoming Peer Releases

Other gaming giants, Penn National (PENN - Free Report) and Red Rock Resorts (RRR - Free Report) are expected to release their quarterly numbers on Nov 1 and Nov 6, respectively.

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