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Factors Setting the Tone for Boyd Gaming (BYD) Q4 Earnings

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Boyd Gaming Corporation (BYD - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 16. In the last reported quarter, the company delivered an earnings surprise of 123.5%.

How Are Estimates Placed?

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 33 cents, which indicates a decline of 34% from 50 cents reported in the year-ago quarter.

For revenues, the consensus mark is at nearly $614.7 million that indicates a decline of 26.2% from the prior-year quarter’s levels.

Let's take a look at how things have shaped up in the quarter.

Boyd Gaming Corporation Price and EPS Surprise

 

Boyd Gaming Corporation Price and EPS Surprise

Boyd Gaming Corporation price-eps-surprise | Boyd Gaming Corporation Quote

 

Factors at Play

Boyd Gaming’s fourth-quarter 2020 performance is likely to have been negatively impacted by the coronavirus pandemic. Notably, limited capacity on casino floors along with reduced amenities (owing to the pandemic) is expected to have had an impact on traffic in the fourth quarter. Although the company is witnessing frequent visitation from its regional customers, recovery in Las Vegas region is unlikely.

This along with elevated expenses on account of reopening transitions is likely to have hurt margins in the to-be-reported quarter. During third-quarter earnings call, the company stated that it expects fourth-quarter capital expenditures to be approximately $25 million.

However, efforts to expand portfolio and online offerings are likely to get reflected in the company’s results for the quarter. Notably, expansions with respect to FanDuel, Stardust and B Connected Sports are likely to have contributed to fourth-quarter top line. Also, initiatives regarding the integration of digital technology and traditional casino entertainment experience along with easing of travel restrictions in Hawaii are likely to get reflected in the company’s fourth-quarter performance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Boyd Gaming this time around. A stock needs to 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 -7.25%. You can uncover 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 complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

AMC Entertainment Holdings, Inc. (AMC - Free Report) has a Zacks Rank #2 and an Earnings ESP of +14.69%.

Camping World Holdings, Inc. (CWH - Free Report) has a Zacks Rank #2 and an Earnings ESP of +45.46%.

iHeartMedia, Inc. (IHRT - Free Report) has a Zacks Rank #3 and an Earnings ESP of +14.29%.

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