Boyd Gaming Corporation (BYD) Q1 Earnings Preview

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Boyd Gaming Corporation (NYSE:BYD) is scheduled to report its first quarter results on Wednesday, April 30. Shares of the multi-jurisdictional gaming company have plunged about 10% this month. Wall Street expects the Las Vegas-based company to report $713.12 million in revenues and $0.01 in EPS. Boyd Gaming had earned $0.01 per share on revenues of $736.98 in the same quarter last year.

Boyd Gaming

Boyd Gaming Revenues

Analysts have a consensus ‘Hold’ rating on Boyd Gaming

For the full year 2014, Wall Street forecasts Boyd Gaming Corporation (NYSE:BYD)’s revenues to rise 0.40% from $2.89 billion to $2.91 billion. Full year earnings are expected to come at $0.21 per share, compared to a net loss of $0.34 a share last year. The stock has an average recommendation of Hold from 14 brokerages.

According to Thomson Reuters, 10 analysts have a Hold rating on Boyd Gaming, 4 rate it a Buy, 3 analysts have an Underperform rating, while only one analyst rates it a Strong Buy. The average price target on the stock is $11.14. On Monday, Morgan Stanley analyst Thomas Allen said in a research note that he maintains an Overweight rating on the stock with $13 price target. Last month, Paul Singer’s Elliott Management disclosed a 4.99% stake in Boyd Gaming Corporation (NYSE:BYD).

Increasing visitor spending a positive for Boyd Gaming

A positive sign for the company is that visitors have started spending more. According to a recent survey, visitors to Las Vegas are spending 10% more than last year. It’s the highest rise in spending levels since 2005. Such spending levels are likely to increase the revenues of Boyd Gaming.

The survey was conducted on 3,600 visitors. Researchers found that people are now increasing the amount of money spent per trip to the city. Casino owners like Boyd Gaming Corporation (NYSE:BYD) saw a significant decline in gambling revenues after the 2008 financial crisis. Visitors were reluctant to spend over the last few years. In 2013, visitor spending in Las Vegas grew 3.5%.

Boyd Gaming Corporation (NYSE:BYD) shares inched up 0.17% to $11.80 in pre-market trading Wednesday.

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