Factors Setting the Tone for Boyd Gaming (BYD) Q4 Earnings
Boyd Gaming Corporation BYD is scheduled to report fourth-quarter 2022 results on Feb 2, 2023. In the last reported quarter, the company delivered an earnings surprise of 15.6%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $1.45, indicating a rise of 7.4% from $1.35 reported in the year-ago quarter.
For revenues, the consensus mark is at nearly $886.1 million. The metric suggests an increase of 0.7% from the year-ago quarter’s figure.
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Boyd Gaming’s fourth-quarter 2022 performance is likely to have benefited from Las Vegas operations, solid demand for sports betting and portfolio-expansion efforts. This and increased play from core customers and consistency in customer spending are likely to have aided the company’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for Midwest and South and Downtown Las Vegas segments’ revenues are pegged at $603 million and $54 million, indicating a rise of 2.2% and 1.9%, respectively, on a year-over-year basis.
Improvement in destination business and pent-up demand for non-gaming amenities are likely to have aided the company’s fourth quarter top-line. During the previous quarter, the company reported strong Hawaiian visitation and solid contributions at Main Street Station. Also, it stated that hotel reservations are trending above 2021 levels and are surpassing 2019 levels at many of its properties. During the third quarter, the company’s revenues from the hotel business increased 5% on a year-over-year basis. Given the visitation in recovery mode, the momentum is likely to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for Room revenues for the fourth quarter is pegged at $51 million compared with $44.8 million reported in the prior-year quarter. The consensus mark for Other revenues is pegged at $102 million compared with $82 million in the prior-year quarter.
However, elevated expenses on account of inflationary pressures are likely to have hurt the company’s performance in the fourth quarter. This and a decline in gaming revenues might have negatively impacted the fourth-quarter 2022 top line. The Zacks Consensus Estimate for the fourth-quarter gaming revenues is pegged at $667 million, suggesting a decline of 2.8% from $686 million reported in the prior-year quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Boyd Gaming this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Boyd Gaming has an Earnings ESP of -2.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Red Rock Resorts, Inc. RRR has an Earnings ESP of +17.33% and a Zacks Rank #3.
Shares of Red Rock Resorts have gained 0.7% in the past year. RRR’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 66.7%.
Crocs, Inc. CROX has an Earnings ESP of +1.79% and a Zacks Rank #3.
Shares of Crocs have gained 18.2% in the past year. CROX’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 18.2%.
Planet Fitness, Inc. PLNT has an Earnings ESP of +1.30% and a Zacks Rank #3.
Shares of Planet Fitness have declined 7.1% in the past year. PLNT’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 6.6%.
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Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
Crocs, Inc. (CROX) : Free Stock Analysis Report
Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report
Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report
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