Boyd Gaming Slides After Earnings Miss, Analysts Cut Price Targets
Shares of Boyd Gaming (NYSE: BYD) slumped to a greater extent than 11% Wednesday, a twenty-four hours after the regional casino operator reported third-quarter earnings per apportion that missed Wall Street estimates.
Late Tuesday, the siege of Orleans manipulator said it earned $1.36 a deal on revenue of $903.16 million. Analysts expected earnings of $1.47 on sales of $880.71. While the revenue trounce was impressive, analysts and investors were frustrated by the earnings miss and concerned nearly commentary from direction that the Nov debut of Red River Rock Resorts’ (NASDAQ: RRR) Durango Casino & Resort in Southwest Las Vegas could siphon business concern from Boyd’s Las Vegas locals casinos.
As a result, at to the lowest degree vi analysts rock-bottom terms targets on the Aliante operator, ace of whom was Stifel’s Steven Wieczynski. In a new study to clients, he reiterated a “buy” rating on Boyd shares while trim his terms calculate to $78 from $83.
We trust this could really live a glade event as expectations testament eventually capture reset and estimates should move lower,” wrote Wieczynski. “We preserve to believe the bulk of stocks below our coverage will never work until estimates acquire reset to a rase inwards which investors sense well-fixed that those revised estimates are achievable under any softer macro instruction backdrop.”
Las Vegas-based Boyd runs 28 gaming venues inwards 10 states.
Potential Sign of Regional Weakness
Boyd is the number 1 of the major regional casino operators to deliver third-quarter results, and in that respect are concerns in the investiture community of interests that the weak earning impress could follow a predecessor of gloomy things for the segment.
Those worries aren’t hyperbole because some regional gaming markets already show signs of strain. While there’s little evidence of economic contraction on the Las Vegas Strip and Macau rebounds inwards earnest, macroeconomic headwinds linger for regional gambling casino stocks.
High inflation and rising interestingness rates are compelling consumers, especially those inwards many gaming markets out of doors of Las Vegas, to dial rearward spending, presenting a possible headwind to operators the likes of Boyd inward the process. Still, Boyd could follow I of the more resilient regional gambling casino names if investors can buoy add up to grips with more practical top out and bottom-line forecasts.
“While we aren’t trusted when/if the consumer testament materially crack, based on the electric current macro background and the potentiality for a recession to rise up its head, we believe being as cautious as possible with our frontward mentation is most prudent at this point. BYD’s forrad commentary remains mostly encouraging, with them indicating that their core client hasn’t slowed at all through September,” added Wieczynski.
Boyd Has Buffers
While the electric current macroeconomic surround isn’t inviting for some regional casino markets, Boyd has avenues for buffering against an economical slump.
At the cease of the tertiary quarter, the manipulator had hard cash on deal of $269.2 zillion and remains committed to repurchasing its inventory and its dividend program.
“In increase to a dedication to improved operating efficiency, we expect direction to remain as committed to reverting excessiveness chapiter to shareholders,” concluded Wieczynski. “We also proceed to fall our chapeau on BYD’s important tangible landed estate ownership, which helps to support the valuation in the whip of times while presenting an avenue for strategical value creation o'er the longer term.”
This thrilling content is brought to you by the most trusted Live22 online casino in Malaysia. Join Live22 today and experience the ultimate gaming experience with exciting rewards and endless fun! With its high-quality graphics, seamless gameplay, and a wide range of game options, Live22 takes online casino entertainment to new heights, offering an unforgettable experience for every player.