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Boyd Gaming (BYD) Q2 Earnings Beat Estimates, Decline Y/Y

Zacks Equity Research
·4 min read

Boyd Gaming Corporation BYD reported second-quarter 2020 results, wherein both the top and the bottom line beat the Zacks Consensus Estimate. However, earnings and revenues declined sharply year over year on account of the coronavirus pandemic.

The company also stated that it is making significant progress in its digital platform with the launch of the Stardust Social Casino mobile app. Moreover, the company along with FanDuel Group rolled out the online casino product in Pennsylvania. Notably, the company intends to capitalize on the growth opportunity with interactive gaming and mobile sports betting. Following the announcements, the company’s shares rose 4.6% during after-hour trading session on Jul 28.

Boyd Gaming Corporation Price, Consensus and EPS Surprise


Boyd Gaming Corporation Price, Consensus and EPS Surprise
Boyd Gaming Corporation Price, Consensus and EPS Surprise

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

Q2 Earnings and Revenues

In the quarter under review, adjusted loss per shares came in at 98 cents, narrower than the Zacks Consensus Estimate of a loss of $1.45. In the prior-year quarter, the company had reported adjusted earnings of 46 cents per share.

Total revenues of $209.9 million beat the consensus mark of $167 million by 25.7%. However, the top line declined 75.2% on a year-over-year basis.

Total adjusted EBITDAR during the reported quarter came in at $16.1 million, down 93.1% year over year.

Segmental Details

Las Vegas Locals

Revenues at this segment amounted to $48.7 million, down 78% year over year. Moreover, the segment’s adjusted EBITDAR came in at $2.9 million compared with $71.4 million in the year-ago quarter.

Downtown Las Vegas

Revenues at the segment declined 92.8% from the prior-year quarter’s figure to $4.7 million. Adjusted EBITDAR came in at ($7.2) million against $15.9 million reported in the year-ago quarter. The decline can primarily be attributed to reduced visitation to Las Vegas as well as lower business volumes from the company's Hawaiian customer base.

Midwest and South Segment

Revenues at this segment fell 72.1% from the prior-year quarter’s figure to $156.5 million. Adjusted EBITDAR was reported at $32.7 million, down from $165.1 million in the year-ago quarter. Although the segment performed exceptionally well post reopenings, dismal traffic due to the coronavirus outbreak is likely to hurt margins going forward.

Other Financial Details

As of Jun 30, 2020, the company had cash on hand of $1.31 billion. This reflects $670.0 million that was drawn from the company's revolving credit facilities on Mar 16, 2020 as well as $600 million of 8.625% senior notes (due 2025) issued on May 21, 2020. Total debt amounted to $4.98 billion.

Zacks Rank & Key Picks

Boyd Gaming currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the Consumer Discretionary sector are Monarch Casino & Resort, Inc. MCRI, YETI Holdings, Inc. YETI and DouYu International Holdings Limited DOYU. Monarch Casino and YETI Holdings sport a Zacks Rank #1, while DouYu International carries a Zacks Rank #2 (Buy).

Earnings in 2021 for Monarch Casino are expected to surge 1033.4%.

YETI Holdings has a three-five-year earnings per share growth rate of 16.2%.

DouYu International has a trailing four-quarter earnings surprise of 127.9%, on average.

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Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
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