Boyd Gaming Earnings Preview

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While Boyd Gaming (NYS: BYD) missed estimates last quarter, investors hope that it will bounce back and outpace Wall Street expectations this quarter. The company will unveil its latest earnings on Tuesday, April 24. Boyd Gaming owns and operates casino entertainment facilities located in Nevada, Mississippi, Illinois, Louisiana, and Indiana.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Boyd Gaming, with 11 of 18 analysts rating it hold. Analysts don't like Boyd Gaming as much as competitor Pinnacle Entertainment overall. Thirteen out of 18 analysts rate Pinnacle Entertainment a buy compared to three out of 18 for Boyd Gaming.
  • Revenue forecasts: On average, analysts predict $623.7 million in revenue this quarter. That would represent a rise of 10.4% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.08 per share. Estimates range from $0.05 to $0.11.

What our community says:
CAPS All-Stars are in strong support of the stock, with 84.3% granting it an outperform rating. The greater community backs the All-Stars, as 86.6% give it a rating of outperform. Boyd Gaming's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.


Management:
A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue rose 9.9% in the fourth quarter of the last fiscal year, and fell 0.9% in the third quarter of the last fiscal year and 0.7% in the second quarter of the last fiscal year.

Now let's get some insight into how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. Boyd Gaming has seen increasing gross margins year over year for the last three quarters. Gross margins reflect the total sales revenue retained after costs. Here are Boyd Gaming's reported margins for the last four quarters:

Quarter

Q4

Q3

Q2

Q1

Gross Margin

44.2%

45.1%

45.3%

44.6%

Operating Margin

9.0%

11.5%

10.8%

8.5%

Net Margin

(0.1%)

0.5%

(0.5%)

(0.6%)

For all our Boyd Gaming-specific analysis, including earnings and beyond, add Boyd Gaming to My Watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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