It's been a sad week for Boyd Gaming Corporation (NYSE:BYD), who've watched their investment drop 15% to US$53.18 in the week since the company reported its first-quarter result. It was not a great result overall. While revenues of US$961m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 12% to hit US$1.40 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, Boyd Gaming's 14 analysts currently expect revenues in 2024 to be US$3.73b, approximately in line with the last 12 months. Per-share earnings are expected to increase 5.8% to US$6.15. Before this earnings report, the analysts had been forecasting revenues of US$3.73b and earnings per share (EPS) of US$6.26 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The consensus price target fell 5.7% to US$72.16, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Boyd Gaming analyst has a price target of US$80.00 per share, while the most pessimistic values it at US$65.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Boyd Gaming's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.3% by the end of 2024. This indicates a significant reduction from annual growth of 6.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Boyd Gaming is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Boyd Gaming's revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Boyd Gaming going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 2 warning signs for Boyd Gaming that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.