Key Factors
- Boyd Gaming is down barely per week after reporting fourth quarter earnings, however analysts proceed to bid the inventory greater.
- The corporate competes in land-based (on-premises) and on-line gaming markets.
- BYD inventory is at a confirmed assist degree and could be one for traders to purchase on the dip.
- 5 shares we like higher than Boyd Gaming
Only a few days earlier than the Tremendous Bowl kicked off in Las Vegas, Boyd Gaming Company NYSE: BYD put the highlight on Vegas otherwise. The Las Vegas-based firm delivered its fourth quarter earnings report. The headline outcomes confirmed earnings per share of $1.66 on income of $954.51 million.
Each numbers exceeded analysts’ estimates, with EPS falling barely decrease than the $1.72 the corporate booked in the identical quarter in 2022. For the 12 months, earnings have been flat, however income was up 5% in the identical interval.
Boyd didn’t problem full-year steerage for 2024, however analysts clearly preferred what they heard. Because the earnings report, the Boyd Gaming analyst rankings on MarketBeat show that 5 analysts have reiterated their bullish rankings on BYD inventory, with all 5 elevating their value targets anyplace from 8% to 25%.
Making up for misplaced time
One motive for the bullish value projections could also be a case of analysts making up for misplaced time. BYD inventory is down over 4% within the final 12 months. Buyers have been bitter on client discretionary shares in 2023. Nonetheless, that narrative did not play out as anticipated. Particularly when it got here to leisure shares. As Boyd Gaming’s outcomes present, customers are greater than prepared to spend at casinos. The corporate posted sequential income development in each quarter and earnings development in two out of 4 quarters.
Analysts could also be involved concerning the capital expenditures that totaled $374 million in 2023 and are forecast to extend to between $400 and $450 million in 2024. However that appears to be effectively lined as the corporate has no near-term maturing debt and rising free money stream (FCF).
Anticipated development from on-line gaming
In lower than one era, on-premises gaming has turn out to be mainstream. Since 2019, the following wave of development on this sector has taken the type of on-line gaming (iGaming) area. Boyd captures this market in two methods.
First, the corporate has a web based on line casino, the Stardust On line casino, which permits clients in choose states to take part in on-line on line casino video games. The corporate additionally has a 5% stake in FanDuel, which is owned by Flutter Leisure plc NYSE: FLUT. FanDuel, together with DraftKings Inc. NASDAQ: DKNG, is one of many leaders within the quickly rising on-line sportsbook market.
One time climate could have truly made a distinction
Another excuse the inventory could also be dipping put up earnings is the corporate’s near-term forecast. Boyd cited the winter storms and below-zero temperatures that moved via elements of the Midwest as a motive for doubtlessly disappointing ends in their Midwest and South areas within the present quarter.
Buyers will be skeptical when corporations cite climate as a motive for lacking income projections. Typically, nonetheless, the declare will be made with good motive. And this is able to look like a type of occasions. The corporate has seen bettering tendencies for the reason that storms have handed.
A buyable dip could also be coming
The BYD inventory chart reveals the inventory has dropped about 2% for the reason that earnings report. That places the inventory at a confirmed assist degree simply above its 200-day easy transferring common (SMA) and just under its 50-day SMA.
If the inventory have been to drop under that assist line, it will be a buyable dip supported by the corporate’s inner earnings estimates and bullish value targets from analysts.
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