Boyd Gaming Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
Boyd Gaming Corporation (NYSE:BYD) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat both earnings and revenue forecasts, with revenue of US$652m, some 8.8% above estimates, and statutory earnings per share (EPS) coming in at US$0.33, 161% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Boyd Gaming
Taking into account the latest results, the consensus forecast from Boyd Gaming's twelve analysts is for revenues of US$2.89b in 2021, which would reflect a sizeable 22% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Boyd Gaming forecast to report a statutory profit of US$1.99 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.86b and earnings per share (EPS) of US$1.16 in 2021. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 19% to US$42.36. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Boyd Gaming analyst has a price target of US$49.00 per share, while the most pessimistic values it at US$23.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Boyd Gaming's growth to accelerate, with the forecast 22% growth ranking favourably alongside historical growth of 7.3% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 21% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Boyd Gaming is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Boyd Gaming following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Boyd Gaming going out to 2024, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 3 warning signs for Boyd Gaming (of which 1 can't be ignored!) you should know about.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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