Boyd Gaming Corporation BYD continues to benefit from acquisitions, a focus on online betting and strong performance from the interactive gaming platform. The business benefited from increased traffic from local and regional customers. However, high costs affect business performance. Let’s go deeper.
Boyd Gaming continues to expand its portfolio by strengthening current operations and growing through capital investments and other strategic moves. The company relies heavily on acquisitions as a strategy to expand its brand presence. It should be mentioned that in 2019, the company benefited from the acquisitions of Lattner (on June 1, 2018), Valley Forge (September 17, 2018) and Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park (October 15, 2018). 2018).
Meanwhile, the Zacks Rank #3 (Hold) company continues to make solid progress on its expansion into Northern California. Currently, he is working on Wilton Rancheria Resorts, which is positioning itself as the closest Class 3 casino to downtown Sacramento in the South Bay area. The company plans to open the property by the second half of 2022.
Meanwhile, Boyd Gaming has undertaken efforts to expand online betting offerings. One of the company’s notable initiatives is the legalization of sports betting. During the fourth quarter of 2021, the company opened FanDuel Sportsbooks at its Louisiana properties and launched mobile sports betting in the region. Going forward, Boyd Gaming remains optimistic about the prospects for online gaming in Ohio. It plans to launch FanDuel retail and mobile sportsbooks in the state by the end of 2022.
Since the coronavirus outbreak, Boyd Gaming has witnessed a strong performance of the interactive gaming platform. Thanks to the strategic partnership with FanDuel, the company is optimistic about its future in the iGaming industry. Given growth opportunities from expanding into new markets and digital opportunities in online casino gaming, the company expects EBITDAR (from its online operations) to exceed $30 million in 2022.
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Shares of the company have gained 3.6% in the past six months, compared to a 37.6% decline in the industry.
Despite several margin improvement initiatives, Boyd Gaming has struggled with higher spending on games, food and beverage, room and other offerings. The company experienced high general and administrative expenses in the fourth quarter of 2021. Total operating costs and expenses in the fourth quarter of 2021 increased 26.4% year-over-year to $663 million. However, Boyd Gaming said his team is doing a great job dealing with inflationary pressures.
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Crocs boasts a Zacks Rank #1 (Strong Buy). The company has a four-quarter earnings surprise of 36%, on average. Shares of Crocs are down 12.2% over the past year. You can see the full list of today’s Zacks #1 Rank stocks here.
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The Zacks consensus estimate for FUN’s sales and EPS in 2022 suggests growth of 32.6% and 612.7%, respectively, from prior year period levels.
Ralph Lauren boasts a No. 1 Zacks rank. The company has a trailing four-quarter earnings surprise of 94.1% on average. Shares of Ralph Lauren are down 17% over the past year.
Zacks’ consensus estimate for RL sales and EPS in 2022 suggests growth of 40% and 380.6%, respectively, from prior year period levels.
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