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Boyd Gaming Delivers Q4 Beat & Resumes Dividend; Shares Up 6.5%

Boyd Gaming (NYSE: BYD) shares jumped 6.5% on February 4 after the company delivered a blowout fourth-quarter results and also resumed its dividend payment of $0.15, which was more than double the previously suspended dividend.

The gaming and hospitality company topped both earnings and revenue estimates driven by robust performance across all segments.

Q4 Beat

Markedly, adjusted earnings of $1.35 per share almost trebled year-over-year and beat analysts’ expectations of $1.25 per share. The company reported earnings of $0.46 per share for the prior-year period.

Furthermore, revenues jumped 38.4% year-over-year to $879.8 million and exceeded consensus estimates of $839.3 million.

On top of this, adjusted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) margins after corporate expense expanded 640 bps to 39.5% compared to 33.1% in the year-ago quarter.

Boyd Gaming Resumes Dividend of $0.15

Boyd Gaming reinstated its quarterly dividend of $0.15 per share, beginning in the second quarter of 2022.

Notably, the newly announced dividend is more than double the previous dividend of $0.07, which was suspended in March 2020 due to COVID-19-related issues.

The dividend is payable on April 15 to shareholders on record as of March 15.

Earlier, in October 2021, Boyd Gaming resumed regular share repurchases under a repurchase program worth $300 million.

CEO Comments

Boyd Gaming CEO, Keith Smith, commented, “As we begin 2022, we remain focused on executing our proven operating strategy, as well as driving incremental growth through strategic reinvestments in our portfolio and the continued expansion of our online business.”

Wall Street’s Take

Following the upbeat Q4 results and resumption of dividends, Stifel analyst Steven M. Wieczynski increased the price target on Boyd Gaming to $90 (41.9% upside potential) and reiterated a Buy rating.

Turning to Wall Street, the analyst consensus is also optimistic about the stock with a Moderate Buy rating based on 4 Buys and 2 Holds. The average Boyd Gaming stock price projection of $81.17 indicates an upside potential of 27.99%.

TipRanks’ Smart Score

BYD scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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