Why Is Boyd (BYD) Down 3.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Boyd Gaming (BYD). Shares have lost about 3.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Boyd due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Boyd Gaming Q1 Earnings & Revenue Beat Estimates
Boyd Gaming reported first-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
The company’s results in the quarter benefited from record performances in the Las Vegas Locals and Downtown segments. Sharp increase in online operations and management fees from Sky River Casino also drove BYD’s results during the quarter.
Robust tourism trend across Las Vegas Valley has remained a positive for Boyd Gaming. In the last 12 months, more than 40 million people visited Las Vegas, up 16% year over year.
Earnings and Revenues
In the quarter under review, adjusted earnings per share (EPS) of $1.71 outpaced the Zacks Consensus Estimate of $1.51 by 13.3%. In the prior-year quarter, the company reported an adjusted EPS of $1.40.
Total revenues of $964 million beat the consensus mark of $889 million by 8.8%. The top line increased 12% on a year-over-year basis. The upside was primarily backed by solid contributions from online gaming, management fees (from Sky River Casino), non-gaming operations and growth in destination business.
Total adjusted EBITDAR during the reported quarter amounted to $367.1 million compared with $338.8 million in the prior-year quarter. Property-adjusted EBITDAR margin was 40.4% compared with 41.9% reported in the year-ago quarter.
Las Vegas Locals
During first-quarter 2023, revenues amounted to $240.3 million compared with $227.6 million reported in the prior-year quarter. Adjusted EBITDAR totaled $126.2 million compared with $118.7 million reported in the year-ago quarter’s levels.
Downtown Las Vegas
During the quarter, revenues increased 14.3% year over year to $56.6 million. Adjusted EBITDAR was $22.4 million compared with $18.4 million reported in the year-ago quarter.
Midwest and South Segment
During the quarter under review, revenues amounted to $512.2 million compared with $517.1 million reported in the prior-year quarter. Adjusted EBITDAR totaled $198.7 million compared with $212.2 million reported in the year-ago quarter’s levels.
During first-quarter 2023, the company’s total operating costs and expenses were $679.1 million compared with $609.7 million reported in the year-ago quarter. Selling, general and administrative expenses amounted to $100.3 million compared with $92.1 million reported in the prior-year quarter.
As of Mar 31, Boyd Gaming had cash on hand of $263.5 million compared with $283.5 million as of Dec 31, 2022. Total debt amounted to $3 billion compared with $3.1 billion reported in the prior-year quarter.
During the quarter, the company repurchased shares of its common stock worth approximately $106 million. As of Mar 31, BYD stated the availability of approximately $133 million under its repurchase program.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
At this time, Boyd has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Boyd has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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