Boyd Gaming Corporation (BYD – Free Report) is expected to report Q4 2022 results on February 2, 2023. In the last reported quarter, the company delivered a surprise profit of 15.6%.
How are estimates posted?
Zacks’ consensus estimate for fourth-quarter earnings per share is pegged at $1.45, indicating a 7.4% increase from $1.35 reported in the year-ago quarter.
For revenue, the consensus figure is nearly $886.1 million. The statistic suggests a 0.7% increase over the year-ago figure.
Let’s take a look at how things developed in the quarter.
Factors at play
Boyd Gaming’s performance in the fourth quarter of 2022 likely benefited from its Las Vegas operations, solid demand for sports betting and portfolio expansion efforts. This and increased core customer play and consistency in customer spending likely contributed to the company’s performance in the reportable quarter. The Zacks Consensus Estimate for revenue from the Midwest and South and Downtown Las Vegas segments is estimated at $603 million and $54 million, indicating an increase of 2.2% and 1.9% year-over-year, respectively.
Improving destination business and pent-up demand for non-gaming amenities likely contributed to the company’s fourth-quarter revenue. During the prior quarter, the company reported strong Hawaiian visits and solid contributions to Main Street Station. It also stated that hotel bookings are trending above 2021 levels and surpassing 2019 levels at many of its properties. During the third quarter, the company’s hotel revenue grew 5% year-over-year. Given the visit in recovery mode, the momentum is likely to have continued into the quarter to be reported. The Zacks Consensus Estimate for Room revenue for the fourth quarter is pegged at $51 million compared to $44.8 million reported in the same quarter last year. The consensus figure for Other income is set at $102 million compared to $82 million in the same quarter last year.
Higher costs due to inflationary pressures are likely to have hurt the company’s performance in the fourth quarter. This and a decline in gaming revenue may have negatively impacted Q4 2022 revenue. Zacks’ consensus estimate for Q4 gaming revenue is pegged at $667 million, representing a decline of 2 .8% versus $686 million reported in the quarter last year.
What our model says
Our tried and tested model does not predict a conclusive profit for Boyd Gaming this time around. A stock must have a positive earnings ESP and a Zacks rank #1 (strong buy), 2 (buy), or 3 (hold) to beat earnings. But that’s not the case here.
Earnings ESP: Boyd Gaming has an earnings ESP of -2.52%. You can discover the best stocks to buy or sell before they’re reported with our earnings ESP filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the full list of current Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary space for investors to consider as our model shows they have the right combination of elements to deliver a profit this quarter:
Red Rock Resorts, Inc. (RRR – free report) has a gain ESP of +17.33% and a Zacks Rank #3.
Shares of Red Rock Resorts are up 0.7% over the past year. RRR’s revenue topped the consensus figure in all four subsequent quarters, averaging 66.7% surprise.
Crocs Inc. (CROX – free report) has a gain ESP of +1.79% and a Zacks Rank #3.
Shares of Crocs are up 18.2% over the past year. CROX’s earnings topped the consensus figure in all four subsequent quarters, averaging 18.2% surprise.
Planet Fitness, Inc. (PLNT – free report) has a gain ESP of +1.30% and a Zacks Rank #3.
Shares of Planet Fitness are down 7.1% over the past year. PLNT’s gains beat consensus in all four subsequent quarters, averaging 6.6% surprise.
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