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Boyd Gaming (BYD) Q3 Earnings Beat Estimates, Increase Y/Y

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Boyd Gaming Corporation BYD reported solid third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate as well as rising year over year. Both the metrics surpassed their respective consensus mark for the sixth straight quarter.

President and CEO of Boyd Gaming, Keith Smith, stated, “Continued growth in visitation and spending among our core customers, combined with our more efficient operating model, resulted in a third-quarter Companywide revenue record, EBITDAR growth of more than 42%, and a nearly 400-basis point improvement in operating margins.”

Q3 Earnings and Revenues

In the quarter under review, adjusted earnings per share were $1.30, outpacing the Zacks Consensus Estimate of $1.21 by 7.4%. The metric increased significantly from 38 cents reported in the prior-year quarter.

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

Quarterly revenues of $843.1 million beat the consensus mark of $837 million by 0.7%. The top line increased 29.3% on a year-over-year basis.

Total adjusted EBITDAR during the reported quarter amounted to $360.6 million compared with $259.9 million in the prior-year quarter. Property adjusted EBITDAR margins came in at 42.8%, up from 39.8% reported in the year-ago quarter.

Segmental Detail

Las Vegas Locals

During the third of 2021, revenues in the segment amounted to $231.3 million, up 35.2% year over year. The segment’s adjusted EBITDAR totaled $125.4 million, up 58.9% from $78.9 million reported in the year-ago quarter. During the quarter under review, adjusted EBITDAR margin rose more than 809 basis points (bps) year over year to 54.2%.

Downtown Las Vegas

During the quarter, revenues in the segment rallied 140.2% from the prior-year quarter’s figure to $42.1 million. Adjusted EBITDAR was $13.2 million against ($1.5) million reported in the year-ago quarter. Adjusted EBITDAR margin during the third quarter came in at 31.4% against (8.6%) reported in the prior-year quarter.

Midwest and South Segment

During the third quarter, revenues in the segment increased 22.9% year over year to $569.7 million. Adjusted EBITDAR amounted to $222.1 million, up 21.7% from $182.5 million reported in the year-ago quarter. Adjusted EBITDAR margin during the quarter came in at 39% compared with 39.4% reported in the prior-year quarter.

Operating Highlights

During third-quarter 2021, the company’s total operating costs and expenses came in at $619.9 million compared with $525.2 million reported in the year-ago quarter. During the quarter, selling, distribution and administration expenses came in at $91.2 million compared with $85.9 million reported in the prior-year quarter.

Balance Sheet

As of Sep 30, 2021, the company had cash on hand of $ $570.9 million compared with $334.5 million as of Jun 30, 2021. Total debt during the third quarter amounted to $3.38 billion compared with $3.39 billion in second-quarter 2021.

Backed by the solidarity of its balance sheet, the company authorized a new share repurchase program worth $300 million. The initiative was a testament to the company’s long-term growth prospects and balanced approach in allocating capital to growth investments, deleveraging and returning free cash flow to shareholders. The company stated availability of $61 million under its previous repurchase program.

Zacks Rank & Key Picks

Boyd Gaming currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the same space include Golden Entertainment, Inc. GDEN, Churchill Downs Incorporated CHDN and Accel Entertainment, Inc. ACEL. Golden Entertainment and Churchill Downs sport a Zacks Rank #1, while Accel Entertainment carries a Zacks Rank #2.

For 2021, earnings for Golden Entertainment, Churchill Downs and Accel Entertainment are expected to surge 232.4%, 644.6% and 957.1%, respectively.


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