Boyd Gaming Corporation (BYD, Financial) revealed its financial performance for the first quarter, showcasing a notable revenue achievement. The company reported revenue of $991.6 million, significantly exceeding the analyst consensus estimate of $972.62 million.
Despite the challenges posed by severe weather conditions across the Midwest and South, Boyd Gaming succeeded in growing both revenue and Adjusted EBITDAR at the company and property levels. The company managed to sustain impressive property operating margins of 40%, demonstrating resilience against difficult comparisons, such as those related to Leap Year.
Keith Smith, CEO of Boyd Gaming, expressed satisfaction with the company's performance, noting consistent business trends during the first three weeks of April despite the broader economic uncertainties. He emphasized the strength of the company's balance sheet and the capability of its experienced management team to navigate the current economic environment effectively.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Boyd Gaming Corp (BYD, Financial) is $81.00 with a high estimate of $88.00 and a low estimate of $72.00. The average target implies an upside of 22.65% from the current price of $66.04. More detailed estimate data can be found on the Boyd Gaming Corp (BYD) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Boyd Gaming Corp's (BYD, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Boyd Gaming Corp (BYD, Financial) in one year is $80.99, suggesting a upside of 22.64% from the current price of $66.04. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Boyd Gaming Corp (BYD) Summary page.
BYD Key Business Developments
Release Date: February 06, 2025
- Full-Year Revenue: Over $3.9 billion, setting a record for the company.
- Full-Year EBITDA: Nearly $1.4 billion.
- Property Level Operating Margins: Over 40% for the full year.
- Fourth-Quarter Revenue: Surpassed $1 billion for the first time.
- Fourth-Quarter EBITDA: Nearly $380 million.
- Las Vegas Locals Segment Operating Margins: Exceeded 50%.
- Midwest and South Segment Same-Store Margins: Consistent at 37%.
- Online Segment Full-Year EBITDA: $76 million after excluding $32 million one-time fees.
- Managed Business Full-Year EBITDA: $96 million.
- Stock Repurchase in Fourth Quarter: $203 million.
- Total 2024 Stock Repurchase: $686 million.
- Total Capital Returned to Shareholders in 2024: Nearly $750 million.
- Year-End Total Leverage: Approximately 2.5 times.
- Capital Expenditures in 2024: $400 million.
- 2025 Capital Expenditure Estimate: $600 million to $650 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Boyd Gaming Corp (BYD, Financial) achieved record revenues of over $3.9 billion in 2024, with companywide EBITDA nearing $1.4 billion.
- The Las Vegas Locals segment delivered its best year-over-year performance in 2024, with operating margins exceeding 50%.
- The Online segment generated $76 million in EBITDA for the full year, reflecting growth from market access agreements and online gaming.
- The Managed business generated $96 million in EBITDA for 2024, driven by management fees from Sky River Casino.
- Boyd Gaming Corp (BYD) returned nearly $750 million in capital to shareholders in 2024 through share repurchases and dividends.
Negative Points
- Competitive pressures in the Las Vegas market continue to pose challenges, particularly for properties like Orleans and Gold Coast.
- The Midwest and South segment faced weather-related disruptions in January, similar to the previous year.
- The Online segment's performance was impacted by lower hold during the NFL season.
- Boyd Gaming Corp (BYD) anticipates continued expense pressures, although they are moderating compared to previous years.
- The company remains cautious about the retail customer segment, which has shown stability but not significant growth.
