Boyd Gaming Corporation (BYD – Free Report) released decent Q3 2022 results, with earnings and revenue above Zacks’ consensus estimate. Both metrics topped their respective consensus mark for the 10th consecutive quarter. Moreover, both the high and the low have increased year over year.
Keith Smith, President and CEO of Boyd Gaming, said, “Our strong operational performance is producing robust free cash flow, enabling us to return nearly $500 million of capital to our shareholders so far this year. . Overall, we are encouraged by the resilience of our business and remain confident in our strategy and ability to deliver consistent results in the current economic environment.
Profits and income
In the quarter under review, adjusted earnings per share (EPS) was $1.48, beating Zacks consensus estimate of $1.28 by 15.6%. In the prior year quarter, the company reported adjusted EPS of $1.30.
Total revenue of $877.3 million beat the consensus mark of $853 million by 2.8%. Revenue increased 4.1% year-on-year. The upside was primarily driven by higher non-gaming revenue (due to improved hotel bookings), strong customer spending and solid F&B activity.
Total Adjusted EBITDAR in the reported quarter was $337.7 million, compared to $340.7 million in the prior year quarter. Property adjusted EBITDAR margins were 41% versus 42.8% in the prior year quarter.
Las Vegas residents
During the third quarter of 2022, segment revenue was $225.8 million, compared to $231.3 million in the prior year quarter. Segment adjusted EBITDAR totaled $111.7 million, down 10.9% from the $125.4 million reported in the prior year quarter.
Downtown Las Vegas
During the quarter, segment revenue increased 17.5% year over year to $49.5 million. Adjusted EBITDAR amounted to $17.7 million, compared to $13.2 million in the corresponding quarter of the previous fiscal year.
Midwest and South Segment
During the second quarter, segment revenue was $602 million, compared to $569.7 million in the prior year quarter. Segment adjusted EBITDAR totaled $230.2 million, up 3.7% from the $222.1 million reported in the prior year quarter.
During the third quarter of 2022, the company’s total operating costs and expenses were $639.8 million, compared to $619.9 million in the prior year quarter. During the quarter, selling, distribution and administrative expenses were $93 million, compared to $91.2 million in the prior year quarter.
As of September 30, 2022, the company had cash of $252.3 million, compared to $250.2 million as of June 30, 2022. Total debt during the third quarter of 2022 was $2.91 billion. dollars, nearly flat sequentially.
During the quarter, the company repurchased common stock worth approximately $135 million. As of September 30, the company announced the availability of approximately $346 million under its buyback program.
During the quarter, the company reported progress on its previously announced acquisition of Pala Interactive. Valued at $170 million, the company expects to close the deal by the end of 2022, subject to regulatory approvals.
Apart from this, the company has announced the opening of Sky River Casino (near Sacramento, CA) on August 15, 2022. Additionally, it has launched a seven-year management agreement to operate the property on behalf of the tribe. Wilton Rancheria.
Zacks ranking and other key picks
Boyd Gaming currently wears a Zacks Rank #2 (Buy). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are Crocs, Inc. (CROSS – free report), Hyatt Hotels Corporation (H – free report) and Live Nation Entertainment, Inc. (LYV – free report).
Crocs sports a Zacks Rank #1 (Strong Buy). CROX has a long-term earnings growth rate of 15%. Shares of Crocs are down 48.5% over the past year.
The Zacks consensus estimate for CROX sales and EPS in 2022 indicates an increase of 49.7% and 20.7%, respectively, from prior year period levels.
Hyatt sports a No. 1 Zacks rank. H has a trailing four-quarter earnings surprise of 798.8% on average. The stock is up 8% over the past year.
Zacks’ consensus estimate for H’s current year sales and EPS indicates an increase of 89.1% and 113%, respectively, over reported levels in the prior year period.
Live Nation sports a No. 1 Zacks rank. LYV has a trailing four-quarter earnings surprise of 70.7%, on average. The stock is down 19.2% over the past year.
Zacks consensus estimate for LYV’s current year sales and EPS indicate growth of 130.8% and 117.2%, respectively, from reported levels in the prior year period .