Boyd Group Services (BYD) reported an improved performance in its second quarter of 2021, as demand for collision repair accelerated significantly in most U.S. markets. The operator of non-franchised collision repair centers posted higher sales and swung from a loss to a profit in the quarter ended June 30, 2021.
Sales came in at $444.6 million in the second quarter, an increase of 44.4% from $308 million in the prior-year quarter. Same-store sales increased by 34.5%.
Meanwhile, Boyd Group posted net earnings of $10.5 million ($0.49 per share) in Q2 2021, compared to a net loss of $5 million (-$0.24 per share) in Q2 2020. (See Boyd Group Services stock charts on TipRanks)
The company reported an adjusted profit of $11.4 million ($0.53 per share) in the second quarter of 2021, compared to an adjusted net loss of $4.8 million (-$0.23 per share) a year ago.
Boyd Group president and CEO Timothy O’Day said, “We achieved strong same-store sales growth in the quarter, which resulted in increased Adjusted EBITDA margins and net earnings, both in the quarter and on a year-to-date basis. Although we continued to experience reduced demand in certain markets at the beginning of the second quarter, demand accelerated in most U.S. markets as the quarter progressed.
“By the end of the second quarter, demand in the U.S. was at meaningfully higher levels than we experienced in the first quarter of 2021. However, the process of adding sufficient capacity to meet the increasing level of demand, including location level administrative staff and technicians, remains a work in progress.”
Boyd has opened 39 locations in the quarter, including 32 through acquisition. Looking at the rest of 2021 and beyond, the company remains confident that it will continue to make progress towards its long-term growth goals and operational plans.
Last week, Desjardins analyst David Newman maintained a Buy rating on BYD while raising its price target to C$260 (from C$240). This implies 6.9% upside potential.
Overall, consensus on the Street is that BYD is a Strong Buy based on eight Buys and one Hold. The average Boyd Group price target of C$252.88 implies 4.3% upside potential to current levels.
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