Boyd Gaming Earnings: Here’s Why Investors are Excited Now

Boyd Gaming Corp. (NYSE:BYD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.84%.

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Boyd Gaming Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 90% to $0.01 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Rose 16.4% to $736.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Boyd Gaming Corp. reported adjusted EPS income of $0.01 per share. By that measure, the company beat the mean analyst estimate of $-0.07. It beat the average revenue estimate of $734.19 million.

Quoting Management: “We saw positive momentum across our operations in March, driving first-quarter results that were ahead of our previous expectations. We were particularly encouraged by improvements in our Las Vegas Locals business, as we were able to generate EBITDA growth for the first time in more than a year,” said Keith Smith, President and Chief Executive Officer of Boyd Gaming. “As we look forward, we are excited by the potential of our online gaming strategy. New Jersey and Nevada are now laying the regulatory groundwork for online gaming, and other states are considering legalization as well. This emerging business provides a compelling opportunity to significantly grow and diversify our business, and we intend to take full advantage of it.”

Key Stats (on next page)…

Revenue increased 17.75% from $625.84 million in the previous quarter. EPS increased to $0.01 in the quarter versus EPS of $-0.31 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.09 to a profit $0.01. For the current year, the average estimate has moved down from a profit of $0.4 to a loss of $0.2 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)