Boyd Gaming (BYD) Q4 Earnings & Revenues Beat Estimates
Boyd Gaming Corporation BYD reported solid fourth-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 seventh straight quarter.
President and CEO of Boyd Gaming, Keith Smith, stated, “Our Company finished 2021 with record quarterly performances across every segment of our operations. For the fourth straight quarter, we set new records for Companywide EBITDAR and operating margins. And on a full-year basis, we surpassed our previous EBITDAR record by more than 50%, as we achieved Companywide operating margins of more than 40%.”
Following the solid results, shares of the company moved up 3.3% during the after-hours trading session on Feb 3.
Q4 Earnings and Revenues
In the quarter under review, adjusted earnings per share (EPS) were $1.35, outpacing the Zacks Consensus Estimate of $1.24 by 8.9%. The metric increased from 46 cents reported in the prior-year quarter. The upside was primarily backed by streamlining of cost structure, strategic reinvestments in its portfolio and expansion of its online business.
Boyd Gaming Corporation Price, Consensus and EPS Surprise
Boyd Gaming Corporation price-consensus-eps-surprise-chart | Boyd Gaming Corporation Quote
Total revenues of $879.8 million beat the consensus mark of $754 million by 0.7%. The top line increased 38.4% on a year-over-year basis.
Total adjusted EBITDAR during the reported quarter amounted to $347.3 million compared with $210.5 million in the prior-year quarter. Property adjusted EBITDAR margins came in at 42.1%, up from 36.1% reported in the year-ago quarter.
Segmental Detail
Las Vegas Locals
During fourth-quarter 2021, revenues in the segment amounted to $236.3 million, up 46.3% year over year. The segment’s adjusted EBITDAR totaled $123.6 million, up 76% from $70.2 million reported in the year-ago quarter’s levels. During the quarter under review, the adjusted EBITDAR margin rose more than 883 basis points (bps) year over year to 52.3%.
Downtown Las Vegas
During the quarter, revenues in the segment rallied 193.9% from the prior-year quarter’s figure to $53.5 million. Adjusted EBITDAR was $20.2 million against ($1.5) million reported in the year-ago quarter. Adjusted EBITDAR margin during the third quarter came in at 37.8% against (0.8%) reported in the prior-year quarter.
Midwest and South Segment
During the third quarter, revenues in the segment increased 29.3% year over year to $590.1 million. Adjusted EBITDAR amounted to $226.8 million, up 42.2% from $159.5 million reported in the year-ago quarter. Adjusted EBITDAR margin during the quarter came in at 38.4%, reflecting a rise of 347 bps from 35% reported in the prior-year quarter.
Operating Highlights
During fourth-quarter 2021, the company’s total operating costs and expenses came in at $663 million compared with $524.6 million reported in the year-ago quarter. During the quarter, selling, distribution and administration expenses came in at $94.5 million compared with $89.7 million reported in the prior-year quarter.
Balance Sheet
As of Dec 31, 2021, the company had cash on hand of $ $344.6 million compared with $570.9 million as of Sep 30, 2021. Total debt during the fourth quarter amounted to $3.1 billion compared with $3.38 billion in third-quarter 2021.
During the quarter, the company resumed its share repurchases under its authorized $300 million repurchase program. The company stated the availability of $361 million under its repurchase program (inclusive of its previous authorization).
The company announced a hike in its quarterly dividend payout. Boyd Gaming raised its quarterly dividend by 114.3%, indicating its intention to utilize free cash for boosting shareholders’ returns. The company raised the quarterly dividend to 15 cents per share (or 90 cents annually) from the previous payout of 7 cents (or 28 cents annually). The hiked dividend will be paid out on Apr 15, 2022, to shareholders on record as of Mar 15, 2022.
2021 Highlights
Total revenues in 2021 amounted to $3,369.8 million compared with $2,178.5 million in 2020.
Adjusted EBITDA in 2021 totaled $1,261.3 million compared with $508 million in 2020.
In 2021, diluted EPS came in at $5.12 per share against ($0.15) reported in the previous year.
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 from the Zacks Consumer Discretionary sector are Crocs, Inc. CROX, RCI Hospitality Holdings, Inc. RICK and JAKKS Pacific, Inc. JAKK.
Crocs flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 41.6%, on average. Shares of Crocs have increased 31.7% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 48.7% and 23.2%, respectively, from the year-ago period’s levels.
RCI Hospitality flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 67.7%, on average. Shares of RCI Hospitality have surged 40.3% in the past year.
The Zacks Consensus Estimate for RICK’s 2022 sales and EPS suggests growth of 33.7% and 18.9%, respectively, from the year-ago period’s levels.
JAKKS Pacific flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 48.9%, on average. Shares of JAKKS Pacific have increased 9.9% in the past year.
The Zacks Consensus Estimate for JAKK’s 2022 sales and EPS suggests growth of 4.9% and 227.8%, respectively, from the year-ago period’s levels.
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