Boyd Gaming expected to report significant revenue gains
By Bob Garcia
The casino operator continues to expand its US business and add more revenue
Boyd Gaming’s Orleans in Las Vegas appears to be having a terrific year this 2021. With its stock up nearly 50% over the past ten months, it continues to have the makings of an earnings season winner. Bank of America is completely confident in this stock and says it could be a third-quarter earnings winner.
Savita Subramanian and Jill Carey Hall, two strategists at the well-known bank, created an impromptu list of small- and mid-cap stocks that could offer plenty of upside surprises when third-quarter earnings season kicks off over the next few days. Currently, the regional casino operator reports a market capitalization of $7.25 billion. That being the case, it easily places it in mid-cap territory.
“With 3Q earnings kicking off next week, we screen for small/mid-caps that could surprise to the upside/downside, based on Buy/Underperform-rated stocks, where our analysts’ estimates are above/below consensus and which beat/missed last quarter,” said the Bank of America strategists.
The markets close on October 26, and the Orleans-based operator is expected to report third-quarter results after that date. Experts and analysts are confident that the gaming company will deliver earnings per share (EPS) of $1.22 for the July-September period with revenues of $836.86 million. Bear in mind that Boyd is on a four-quarter streak of beating any consensus EPS forecast, so seeing these predictions become a reality should not be new news.
Boyd has begun to take a significant lead on margin expansion during the coronavirus pandemic, something that is all too common to see in other operators that focus on local and regional markets in Sin City. The operator currently manages 28 gaming locations in ten states, including 11 in Las Vegas.