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Boyd (BYD) Down 3.3% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Boyd Gaming (BYD). Shares have lost about 3.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Boyd due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Boyd Gaming Q4 Earnings Meet, Revenues Beat Estimates

Boyd Gaming reported fourth-quarter 2018 results, wherein earnings matched the Zacks Consensus Estimate, while revenues outpaced the same.

Adjusted earnings came in at 32 cents per share, in line with the Zacks Consensus Estimate and increased 45.5% year over year on higher margins.

Revenues totaled $791.6 million, faring better than the consensus estimate of $776 million. The top line also improved 33% year over year. Revenue growth can primarily be attributed to year-over-year gain at the Downtown Las Vegas, and Midwest and South segments.

Notably, the company’s fourth-quarter results also include revenues worth $186.8 million, realized from the acquisitions of Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, Valley Forge Casino Resort and Lattner Entertainment.

Segmental Details

Las Vegas Locals

Revenues at this segment amounted to $222.6 million, up 1.3% year over year. Moreover, the segment’s EBITDAR increased to $73 million from $64.4 million registered in the year-ago quarter. Markedly, this was the company’s highest fourth-quarter EBITDAR growth since 2005. The upside was driven by growth across locals properties and Orleans. Ongoing marketing and operational refinements as well as continued strength in the regional economy also drove the segment’s results.

Downtown Las Vegas

At this segment, revenues increased 6.3% to $67.3 million. Adjusted EBITDAR increased to $18.4 million from $16.8 million driven by growth at all three downtown properties.

The Midwest and South Segment

Revenues at this segment rose 61.8% to $501.8 million. Adjusted EBITDAR was $141.8 million, up 64.3% year over year. The segment reported a third straight quarter of EBITDAR growth. Modifications to marketing programs and operational capabilities drove the segment’s revenues and EBITDAR. Further, the acquisition of Valley Forge Casino Resort and Lattner Entertainment contributed to the segment’s performance.

Other Financial Details

As of Dec 31, 2018, Boyd Gaming had cash on hand of $249.4 million. Total debt amounted to $4.03 billion.

For 2019, Boyd Gaming expects total adjusted EBITDAR of $885-$910 million.

How Have Estimates Been Moving Since Then?

Fresh estimates followed a flat path over the past two months.

VGM Scores

Currently, Boyd has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Boyd has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.



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