Markets
BYD

Boyd Gaming Beats on Revenue, EPS Despite a COVID-19 Hit

Casino and gambling company Boyd Gaming (NYSE: BYD) released its third-quarter 2020 earnings report today, showing that while the coronavirus continues to depress results, Boyd is faring better than analysts expected. According to Zack's Equity Research, adjusted earnings per share of $0.38 easily beat Wall Street analyst expectations of $0.17, while analyst consensus revenue forecasts of $609.6 million were handily surpassed by the actual $652.2 million results.

The casino sector has been pummeled by pandemic lockdowns and health precautions during 2020, and the three months ending Sept. 30 showed only a modest decline year over year from Q3 2019. While revenue is 20.4% lower, adjusted earnings fell only 2.9% compared to last year, with adjusted EPS down just $0.01. The metrics show Boyd Gaming is functioning more efficiently, with 36.6% operating margin improving on 2019's 26.1%.

A man playing online casino slot machine games on a laptop computer.

Image source: Getty Images.

The strong rebound is reflected in the current share price, which has recovered to the level achieved immediately before the pandemic struck. The company is also pursuing an aggressive drive into the mushrooming digital sports betting sector, potentially making it more resistant to physical casino shutdowns.

CEO Keith Smith highlighted this, saying, "we continued to build the foundation for future growth through the expansion of our partnership with FanDuel Group, successfully launching mobile sports betting platforms in Illinois and Iowa and expanding our digital reach to more than 30 million adults nationwide."

FanDuel, a subsidiary of the Irish bookmaking holding company Flutter Entertainment (LSE: FLTR), is sustained by strong cash flow, and is working at expanding into the U.S. market as an ally of Boyd, creating the potential for rising ongoing profits for both partners.

10 stocks we like better than Boyd Gaming
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Boyd Gaming wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of October 20, 2020

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool owns shares of Flutter Entertainment. The Motley Fool recommends Boyd Gaming and recommends the following options: short December 2020 $32 calls on Boyd Gaming. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BYD FLTR

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More