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Category: Stock Market and Boyd Gaming
Date: 14 October 2019 Stock Price: $26.02 We take a look at the 2nd quarter earnings report of their 2019 fiscal year of Boyd Gaming an owner and operator of 29 gaming entertainment properties across 10 states in the United States.
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About Boyd Gaming
Founded more than 40 years ago in Las Vegas, Boyd Gaming Corporation is one of the largest and most respected casino entertainment companies in the United States. We currently own and operate 29 gaming entertainment properties in 10 states -- Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania – generating about $3 billion in annual revenues. We are a market-leading operator in several major gaming markets in the United States. In Las Vegas, we are the largest single operator in Downtown, where our three properties -- the Fremont Hotel and Casino, Main Street Station Casino, Brewery and Hotel, and the California Hotel and Casino – account for approximately one-third of the total market.
We are one of the largest operators in the “Las Vegas Locals” market as well, operating nine unique properties that cater primarily to local residents – Aliante Casino Hotel and Spa; Cannery Casino Hotel; Eastside Cannery Casino and Hotel; Gold Coast Hotel and Casino; The Orleans Hotel and Casino; Sam’s Town Hotel and Gambling Hall; Suncoast Hotel and Casino; Jokers Wild Casino; and Eldorado Casino.
Boyd Gaming also has extensive operations across the Midwestern and Southern parts of the country, where we currently operate 17 casino properties in eight states:
We are one of the largest operators in the “Las Vegas Locals” market as well, operating nine unique properties that cater primarily to local residents – Aliante Casino Hotel and Spa; Cannery Casino Hotel; Eastside Cannery Casino and Hotel; Gold Coast Hotel and Casino; The Orleans Hotel and Casino; Sam’s Town Hotel and Gambling Hall; Suncoast Hotel and Casino; Jokers Wild Casino; and Eldorado Casino.
Boyd Gaming also has extensive operations across the Midwestern and Southern parts of the country, where we currently operate 17 casino properties in eight states:
- Blue Chip Casino Hotel Spa, located an hour’s drive from Chicago in Michigan City, Ind.;
- Par-A-Dice Hotel Casino, in East Peoria, Illinois;
- Two Diamond Jo-branded casinos in Dubuque and Worth County, Iowa;
- Kansas Star Casino, Hotel and Event Center, near Wichita;
- Treasure Chest Casino, serving metropolitan New Orleans, Louisiana;
- Delta Downs Racetrack Casino and Hotel, located just east of the Texas border in Vinton, Louisiana;
- Sam's Town Hotel and Casino in Shreveport, Louisiana;
- Evangeline Downs Racetrack Casino in Opelousas, Louisiana;
- Amelia Belle Casino in Amelia, Louisiana;
- Sam's Town Tunica, located a short drive south of Memphis in northwest Mississippi;
- IP Casino Resort Spa in Biloxi, Mississippi;
- Ameristar Casino Hotel Kansas City in Missouri;
- Ameristar Casino Resort Spa St. Charles, near St. Louis, Missouri;
- Belterra Resort Casino in southern Indiana;
- Belterra Park in Cincinnati, Ohio;
- and Valley Forge Casino Resort, just minutes from Philadelphia, Pennsylvania.
Overview of Boyd Gaming's latest earnings report
Data below refers to quarterly data unless specified otherwise:
- Revenue: $846.132 million (up from $616.793 million for the same period of the previous year)
- Revenues increased by 37.1% over the last 12 months
- Operating costs and expenses: $719.440 million (up from $520.535 million for the same period of the previous year)
- Operating costs and expenses increased by 38.2% over the last 12 months
- Net income: $48.484 million (up from $38.945 million for the same period of the previous year)
- Diluted earnings per share: $0.43 (up from $0.34 profit for the same period of the previous year)
- PE ratio of Boyd Gaming: 15.12
- Dividend declared: $0.07
- Dividend yield: 1.07%
- Diluted weighted-average shares outstanding: 113.795 million (down from 115.218 million for the same period of the previous year)
- Cash and cash equivalents: $239.411 million
- Cash and cash equivalents per share: $2.10
- Cash and cash equivalents makes up 8.1% of Boyd Gaming's market capital
- Cash and cash equivalents makes up 3.6% of Boyd Gaming's total assets
- Accounts receivable: $61.244 million
- Accounts receivable makes up 0.91% of Boyd Gaming's total assets
- Goodwill: $1.102 billion
- Goodwill makes up 16.4% of Boyd Gaming's total assets
- Goodwill per stock: $8.23
- Stockholders equity in Boyd Gaming: $1.212 billion
- Stockholders equity per share: $10.65
- SoBoyd Gaming is trading a 2.44 times its stockholders equity which is within the expected range of between 2 and 4 which most firms tend to trade at.
- Cash generated from operations (6 months) : $264.312 million
- Cash generated from operations per share (6 months): $2.32
- Cash generated from operations per share (6 months): $2.32
Boyd Gaming's management commentary on the results
LAS VEGAS, July 30, 2019 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the second quarter ended June 30, 2019.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "During the second quarter, our Company made continued progress executing against our strategic growth initiatives. Despite a few isolated challenges, we delivered revenue, Adjusted EBITDAR and operating margin growth in every segment of our business, as our operating teams identified and drove profitable revenue growth and enhanced efficiencies. We achieved strong growth at our newly acquired properties, significantly improving upon their solid standalone performances last year. And through ongoing marketing and operational initiatives, we are successfully growing visitation and expanding our customer base across the country. In all we are pleased with our progress, and remain confident we are well-positioned to capitalize on future growth opportunities."
Las Vegas Locals
In the Las Vegas Locals segment, second-quarter 2019 revenues were $220.9 million, up from $220.0 million in the year-ago quarter. Second-quarter 2019 Adjusted EBITDAR was $71.4 million, up from $70.2 million in the second quarter of 2018. The Las Vegas Locals segment recorded its highest second-quarter Adjusted EBITDAR in 14 years. Despite challenging year-over-year comparisons and lower hold at The Orleans, the segment achieved continued growth in revenues, Adjusted EBITDAR and operating margins. Adjusted EBITDAR grew at every major property in the segment during the quarter, excluding The Orleans.
Downtown Las Vegas
In the Downtown Las Vegas segment, revenues were $64.5 million in the second quarter of 2019, up from $61.2 million in the year-ago period. Adjusted EBITDAR was a second-quarter record of $15.9 million in the current year, an increase of 17.4% from $13.5 million in the second quarter of 2018. All three Downtown Las Vegas properties set Adjusted EBITDAR records for the second quarter. Segment results reflect strong gains in Hawaiian visitation and unrated play, as well as continued growth throughout the market.
Midwest & South
In the Midwest & South segment, revenues were $560.7 million, up from $335.6 million in the second quarter of 2018. Adjusted EBITDAR was $165.1 million, growing from $98.5 million in the year-ago period. Results for the segment include contributions from the Company's newly acquired properties. On a same-store basis, the Midwest & South segment posted its fifth consecutive quarter of improved revenues, Adjusted EBITDAR and operating margins, with Adjusted EBITDAR gains at a majority of the Company's same-store regional properties. On a combined basis, the Company's newly acquired properties delivered revenue growth and strong Adjusted EBITDAR and margin increases over their standalone results in the prior year.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "During the second quarter, our Company made continued progress executing against our strategic growth initiatives. Despite a few isolated challenges, we delivered revenue, Adjusted EBITDAR and operating margin growth in every segment of our business, as our operating teams identified and drove profitable revenue growth and enhanced efficiencies. We achieved strong growth at our newly acquired properties, significantly improving upon their solid standalone performances last year. And through ongoing marketing and operational initiatives, we are successfully growing visitation and expanding our customer base across the country. In all we are pleased with our progress, and remain confident we are well-positioned to capitalize on future growth opportunities."
Las Vegas Locals
In the Las Vegas Locals segment, second-quarter 2019 revenues were $220.9 million, up from $220.0 million in the year-ago quarter. Second-quarter 2019 Adjusted EBITDAR was $71.4 million, up from $70.2 million in the second quarter of 2018. The Las Vegas Locals segment recorded its highest second-quarter Adjusted EBITDAR in 14 years. Despite challenging year-over-year comparisons and lower hold at The Orleans, the segment achieved continued growth in revenues, Adjusted EBITDAR and operating margins. Adjusted EBITDAR grew at every major property in the segment during the quarter, excluding The Orleans.
Downtown Las Vegas
In the Downtown Las Vegas segment, revenues were $64.5 million in the second quarter of 2019, up from $61.2 million in the year-ago period. Adjusted EBITDAR was a second-quarter record of $15.9 million in the current year, an increase of 17.4% from $13.5 million in the second quarter of 2018. All three Downtown Las Vegas properties set Adjusted EBITDAR records for the second quarter. Segment results reflect strong gains in Hawaiian visitation and unrated play, as well as continued growth throughout the market.
Midwest & South
In the Midwest & South segment, revenues were $560.7 million, up from $335.6 million in the second quarter of 2018. Adjusted EBITDAR was $165.1 million, growing from $98.5 million in the year-ago period. Results for the segment include contributions from the Company's newly acquired properties. On a same-store basis, the Midwest & South segment posted its fifth consecutive quarter of improved revenues, Adjusted EBITDAR and operating margins, with Adjusted EBITDAR gains at a majority of the Company's same-store regional properties. On a combined basis, the Company's newly acquired properties delivered revenue growth and strong Adjusted EBITDAR and margin increases over their standalone results in the prior year.
Boyd Gaming (NYSE: BYD) stock price history
The image below, obtained from Google, shows the stock price history Boyd Gaming over the last 5 years. And it's been a very good time for Boyd Gaming stockholders. 5 years ago the stock was trading at around $9.90 a stock and its currently trading at $26.02 a stock. That's a impressive return of 162.8% returned to Boyd Gaming stockholders over the last 5 years.
The stock of Boyd Gaming is trading at close to the midpoint between its 52 week low and 52 week high which to us is an indication that the momentum and sentiment of Boyd Gaming stock is neutral and one can expect the stock to trade sideways until there is a new catalyst to drive the stock price either higher or lower, such as an earnings release.for Boyd Gaming coming up 22 October 2019.
The stock of Boyd Gaming is trading at close to the midpoint between its 52 week low and 52 week high which to us is an indication that the momentum and sentiment of Boyd Gaming stock is neutral and one can expect the stock to trade sideways until there is a new catalyst to drive the stock price either higher or lower, such as an earnings release.for Boyd Gaming coming up 22 October 2019.
Recent coverage of Boyd Gaming
The extract below discusses the latest regarding Boyd Gaming as obtained from TheStreet.com
LAS VEGAS, Sept. 9, 2019 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) and FanDuel Group today announced the debut of FanDuel Sportsbooks at four Boyd Gaming properties: Blue Chip Casino Hotel and Spa in Michigan City, Indiana; Diamond Jo Casino in Dubuque, Iowa; Diamond Jo Casino in Northwood, Iowa; and Belterra Casino Resort in Florence, Indiana.
The openings follow the successful debut of the FanDuel Sportsbook at Boyd Gaming's Valley Forge Casino Resort in King of Prussia, Pennsylvania, in March, as well as the companies' launch of mobile sports betting across the state of Pennsylvania in July. In the coming months, the two companies also plan to introduce mobile sports products under the FanDuel brand in both Iowa and Indiana, pending the receipt of required regulatory approvals. "Together, Boyd Gaming and FanDuel Group continue to successfully capitalize on the historic opportunity afforded by the legalization and expansion of sports betting in new states across the country," said Keith Smith, President and Chief Executive Officer of Boyd Gaming. "The FanDuel Sportsbook is off to a great start in Pennsylvania, contributing to solid growth in visitation and profitability at our Valley Forge Casino Resort near Philadelphia. We are confident our partners at FanDuel will deliver excellent results in Iowa and Indiana as well, further expanding Boyd Gaming's customer base and enhancing our long-term competitive appeal."
LAS VEGAS, Sept. 9, 2019 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) and FanDuel Group today announced the debut of FanDuel Sportsbooks at four Boyd Gaming properties: Blue Chip Casino Hotel and Spa in Michigan City, Indiana; Diamond Jo Casino in Dubuque, Iowa; Diamond Jo Casino in Northwood, Iowa; and Belterra Casino Resort in Florence, Indiana.
The openings follow the successful debut of the FanDuel Sportsbook at Boyd Gaming's Valley Forge Casino Resort in King of Prussia, Pennsylvania, in March, as well as the companies' launch of mobile sports betting across the state of Pennsylvania in July. In the coming months, the two companies also plan to introduce mobile sports products under the FanDuel brand in both Iowa and Indiana, pending the receipt of required regulatory approvals. "Together, Boyd Gaming and FanDuel Group continue to successfully capitalize on the historic opportunity afforded by the legalization and expansion of sports betting in new states across the country," said Keith Smith, President and Chief Executive Officer of Boyd Gaming. "The FanDuel Sportsbook is off to a great start in Pennsylvania, contributing to solid growth in visitation and profitability at our Valley Forge Casino Resort near Philadelphia. We are confident our partners at FanDuel will deliver excellent results in Iowa and Indiana as well, further expanding Boyd Gaming's customer base and enhancing our long-term competitive appeal."
Boyd Gaming (NYSE: BYD) latest stock valuation
So what is Boyd Gaming's stock worth based on the release of their latest earnings report? Based on Boyd Gaming's latest earnings report our valuation models provide a target (full value) price for Boyd Gaming's stock at $27.60 a stock. We therefore believe that the stock of Boyd Gaming is slightly undervalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $27.60. Therefore we believe a good entry point into Boyd Gaming's stock is at $24.90 or below. We expect the stock to trade at levels around its current price and our target (full value) price until their 3rd quarter earnings release that is expected to be released on 22 October 2019.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $27.60. Therefore we believe a good entry point into Boyd Gaming's stock is at $24.90 or below. We expect the stock to trade at levels around its current price and our target (full value) price until their 3rd quarter earnings release that is expected to be released on 22 October 2019.
Next earnings release date for Boyd Gaming
It is expected that Boyd Gaming (NYSE: BYD) 3rd quarter 2019 earnings report will be released on 22 October 2019.