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Boyd Gaming (BYD) Q4 Earnings Meet, Revenues Beat Estimates

Zacks Equity Research

Boyd Gaming Corporation BYD 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.

Shares of Boyd Gaming have gained nearly 4% in after-hours trading on Feb 21. Also, the stock has rallied 23%, outperforming the industry’s 20.6% growth in the past three months.

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.

Boyd Gaming Corporation Price, Consensus and EPS Surprise

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

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 EBITDA. 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 EBITDA of $885-$910 million.

Zacks Rank & Key Picks

Boyd Gaming carries a Zacks Rank #3 (Hold). Better-ranked stocks worth considering in the same space include PlayAGS, Inc. AGS, Churchill Downs Incorporated CHDN and Zynga Inc. ZNGA. While PlayAGS sport a Zacks Rank #1 (Strong Buy), Churchill Downs and Zynga carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PlayAGS long-term earnings are likely to grow by 12%.

Churchill Downs reported better-than-expected earnings in the trailing three quarters.

Shares of Zynga have surged 42.5% in the past three months.

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