Boyd Gaming (BYD) Q1 Earnings Meet Estimates, Improve Y/Y

Boyd Gaming Corporation (NYSE:BYD) reported first-quarter 2019 results, wherein both earnings and revenues came in line with the Zacks Consensus Estimate.

Adjusted earnings of 43 cents per share matched the Zacks Consensus Estimate and increased 10.3% year over year on higher margins.

Revenues totaled $827.3 million, almost in line with the consensus estimate of $828 million. The top line also improved 36.5% on a year-over-year basis. Revenue growth can primarily be attributed to year-over-year gain at the Downtown Las Vegas, and Midwest and South segments.

Notably, the company’s first-quarter results also include revenues worth $213 million, realized from the acquisitions of Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, Valley Forge Casino Resort and Lattner Entertainment.

Segmental Details

Las Vegas Locals

Revenues at this segment amounted to $222.9 million, up 0.3% year over year. Moreover, the segment’s EBITDAR increased to $74.2 million from $71 million registered in the year-ago quarter. Ongoing marketing and operational refinements as well as continued strength in the regional economy drove the segment’s results.

Downtown Las Vegas

At this segment, revenues rose 4.1% to $63 million. Adjusted EBITDAR increased to $15 million from $13.2 million in the prior-year quarter driven by growth at all three downtown properties. The segment also benefited from the company’s solid Hawaiian customer base.

Boyd Gaming Corporation Price, Consensus and EPS Surprise

The Midwest and South Segment

Revenues at this segment improved 67.4% to $541.4 million. Adjusted EBITDAR was $156.5 million, up from $94.2 million in the year-ago period. Notably, the segment reported a fourth straight quarter of same-store Adjusted EBITDAR growth in the quarter under review. Modifications to marketing programs and operational capabilities drove the segment’s revenues and EBITDA. Further, the acquisition of Valley Forge Casino Resort and Lattner Entertainment contributed to the segment’s quarterly performance.

Other Financial Details

As of Mar 31, 2019, Boyd Gaming had cash on hand of $247.7 million. Total debt amounted to $4 billion.

For 2019, Boyd Gaming continues to expect total adjusted EBITDA of $885-$910 million.

Zacks Rank & Key Picks

Boyd Gaming, which shares space with Red Rock Resorts, Inc. (NASDAQ:RRR) , carries a Zacks Rank #3 (Hold). Better-ranked stocks worth considering in the same space include PlayAGS, Inc. (NYSE:AGS) and Las Vegas Sands Corp. (NYSE:LVS) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PlayAGS long-term earnings are likely to grow by 12%.

Las Vegas Sands’ current-year earnings are likely to witness 0.3% growth.

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