Boyd Gaming (NYSE:BYD) Posts Earnings Results, Hits Expectations

Boyd Gaming (NYSE:BYD) posted its quarterly earnings data on Thursday. The company reported $1.67 EPS for the quarter, meeting analysts’ consensus estimates of $1.67, FiscalAI reports. The business had revenue of $990.46 million for the quarter, compared to analyst estimates of $1 billion. Boyd Gaming had a return on equity of 22.10% and a net margin of 12.29%. The business’s revenue for the quarter was down 1.3% compared to the same quarter last year. During the same quarter last year, the company earned $1.72 earnings per share.

Here are the key takeaways from Boyd Gaming’s conference call:

• Adjusted third-quarter performance improved: excluding the Sam’s Town closures/sale, higher Kansas Star property taxes and lower tax pass-throughs, revenue rose approximately 2% and EBITDA increased 1% year over year, versus reported declines of about 1%.
• The Midwest and South segment continued to perform well, with adjusted revenue up nearly 3% and EBITDA up approximately 2.5%, supported by core and retail customer demand and returns from property investments.
• Las Vegas results were pressured by intensified softness in destination business, particularly at the Orleans, as well as Suncoast construction disruption and elevated Hawaiian airfares and storms affecting downtown Las Vegas. Management expects only modest Las Vegas Locals EBITDA growth next year and remains cautious on destination trends.
• Boyd Interactive and the Managed & Other segment continued to deliver double-digit growth, with management directing investors toward the high end of previously issued guidance; Sky River’s expansion is also generating higher management fees.
• The company returned approximately $180 million to shareholders in the quarter and plans to continue targeting roughly $150 million in quarterly repurchases plus dividends, while maintaining 2.2x traditional leverage and funding growth projects including the Virginia resort, Par-A-Dice and Amelia Belle.

Boyd Gaming Trading Down 1.0%

Shares of BYD traded down $0.70 during mid-day trading on Friday, hitting $71.57. The company had a trading volume of 1,896,412 shares, compared to its average volume of 1,209,485. Boyd Gaming has a 1-year low of $65.00 and a 1-year high of $91.41. The business’s 50-day simple moving average is $74.20 and its 200-day simple moving average is $81.59. The stock has a market cap of $5.20 billion, a PE ratio of 10.81, a P/E/G ratio of 1.29 and a beta of 1.12. The company has a quick ratio of 0.74, a current ratio of 0.77 and a debt-to-equity ratio of 1.05.

Boyd Gaming Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Tuesday, September 15th were given a $0.20 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $0.80 annualized dividend and a dividend yield of 1.1%. Boyd Gaming’s dividend payout ratio (DPR) is currently 3.52%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on BYD shares. Deutsche Bank Aktiengesellschaft raised shares of Boyd Gaming from a “hold” rating to a “buy” rating and raised their price target for the stock from $98.00 to $99.00 in a research note on Tuesday, October 6th. JPMorgan Chase & Co. reduced their price objective on shares of Boyd Gaming from $93.00 to $85.00 and set a “neutral” rating on the stock in a research note on Tuesday. Truist Financial set a $95.00 target price on shares of Boyd Gaming in a research report on Friday. Weiss Ratings raised shares of Boyd Gaming from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, October 14th. Finally, Wells Fargo & Company lowered their target price on shares of Boyd Gaming from $87.00 to $86.00 and set an “equal weight” rating for the company in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, Boyd Gaming presently has an average rating of “Moderate Buy” and an average target price of $89.62.

Key Headlines Impacting Boyd Gaming

Here are the key news stories impacting Boyd Gaming this week:

• Positive Sentiment: Boyd returned approximately $180 million to shareholders during the third quarter, including $164 million in share repurchases and a $0.20-per-share dividend. Management continues to target roughly $150 million of buybacks each quarter, supporting per-share results and potentially signaling confidence in the stock. Boyd Gaming: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Growth in Boyd’s Midwest and South properties, along with property investments and online operations, helped offset softness in the Las Vegas Locals and destination markets. The company’s diversified portfolio remains a key long-term support. Boyd Gaming leans on growth in the Midwest and South as Las Vegas tourism drags
• Neutral Sentiment: Third-quarter adjusted earnings were approximately $1.67 per share, in line with the consensus estimate and slightly above one estimate of $1.65. However, earnings declined from $1.72 per share a year earlier, while adjusted EBITDAR was also modestly lower year over year. Boyd Gaming surpasses Q3 earnings estimates
• Negative Sentiment: Revenue fell about 1.3% year over year to $990.5 million, missing the roughly $1 billion analyst estimate. Weaker Las Vegas visitor demand was the primary concern, raising questions about near-term regional and destination casino trends. Boyd Gaming misses Q3 earnings estimates as Las Vegas visitor demand weakens
• Negative Sentiment: Stifel Nicolaus cut its price target from $92 to $80 and assigned a “hold” rating, reflecting more cautious expectations following the revenue miss and Las Vegas weakness. Stifel Nicolaus rating update

Insider Buying and Selling

In other news, CFO Josh Hirsberg sold 12,777 shares of the business’s stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $89.76, for a total transaction of $1,146,863.52. Following the completion of the sale, the chief financial officer directly owned 422,969 shares of the company’s stock, valued at $37,965,697.44. The trade was a 2.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 22.82% of the company’s stock.

Boyd Gaming Company Profile

Boyd Gaming Corporation is a gaming and hospitality company headquartered in Las Vegas, Nevada. The company owns and operates casinos, hotels, restaurants, entertainment venues and related amenities under brands including Sam’s Town, The Orleans, Gold Coast, Suncoast and Fremont.

Boyd Gaming serves customers across several U.S. states, with a significant presence in Nevada as well as properties in the Midwest and South. Its portfolio includes destination resorts, regional casinos and racetracks offering slot machines, table games, poker, sports betting and other gaming experiences.

The company also operates online gaming and sports-wagering businesses in selected markets, including through partnerships and digital platforms.