Core Insights - Boyd Gaming (NYSE: BYD) operates four divisions: US, International, UK, and Ireland, with the US brand contributing 40% to total 2024 revenue and 37% from iGaming [1] Group 1: Company Overview - Boyd Gaming has a diversified operational structure with significant revenue contributions from its US division [1] - The skepticism surrounding Boyd Gaming's strategic decisions is noted on platforms like Seeking Alpha [1] Group 2: Leadership and Expertise - Howard Jay Klein, with 30 years of experience in major casino operations, leads the investing group The House Edge, focusing on actionable research in the casino and online betting sectors [1] - Klein's background includes roles at notable casinos such as Ballys, Trump Taj Mahal, Mohegan Sun, and Caesars Palace [1] - The House Edge leverages an extensive intelligence network across the US gambling and entertainment sectors, providing insights from various levels of management [1]

Core Viewpoint - Boyd Gaming (BYD) is currently positioned as a more attractive investment option compared to Red Rock Resorts (RRR) based on valuation metrics and earnings outlook [1][3][7]. Valuation Metrics - Boyd Gaming has a forward P/E ratio of 12.34, significantly lower than Red Rock Resorts' forward P/E of 35.50 [5]. - The PEG ratio for Boyd Gaming is 2.88, while Red Rock Resorts has a PEG ratio of 3.64, indicating that BYD is more favorably valued in relation to its expected earnings growth [5]. - Boyd Gaming's P/B ratio stands at 4.95, compared to Red Rock Resorts' P/B ratio of 17.6, further highlighting BYD's relative undervaluation [6]. Earnings Outlook - Boyd Gaming holds a Zacks Rank of 1 (Strong Buy), reflecting positive revisions to its earnings estimates, while Red Rock Resorts has a Zacks Rank of 3 (Hold) [3][7]. - The stronger estimate revision activity for Boyd Gaming suggests a more favorable earnings outlook compared to Red Rock Resorts [7].

Group 1 - Boyd Gaming (BYD) is a notable stock in the Consumer Discretionary sector, which consists of 255 individual stocks and holds a Zacks Sector Rank of 9 [2] - Boyd Gaming currently has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperforming the market in the near term [3] - Year-to-date, Boyd Gaming has gained approximately 17%, outperforming the average gain of 7.3% in the Consumer Discretionary group [4] Group 2 - Boyd Gaming is part of the Gaming industry, which includes 39 companies and is currently ranked 92 in the Zacks Industry Rank [6] - The Gaming industry has seen an average gain of about 22.8% year-to-date, indicating that Boyd Gaming is slightly underperforming its industry peers [6] - Another stock in the Consumer Discretionary sector, Adtalem Global Education (ATGE), has outperformed with a year-to-date increase of 25.8% and holds a Zacks Rank of 2 (Buy) [5][7]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks in various market conditions, focusing on undervalued stocks for potential profits [2][3] Company Analysis: Boyd Gaming (BYD) - Boyd Gaming is currently rated as Zacks Rank 1 (Strong Buy) and has an "A" grade for Value, indicating strong investment potential [4] - The stock is trading at a P/E ratio of 12.81, significantly lower than the industry average P/E of 33.29, suggesting it may be undervalued [4] - Boyd Gaming's Forward P/E has fluctuated between 8.50 and 12.90 over the past year, with a median of 10.91, indicating stable valuation metrics [4] - The P/B ratio for Boyd Gaming is 5.22, which is favorable compared to the industry's average P/B of 13.78, further supporting the undervaluation thesis [5] - Over the past 52 weeks, BYD's P/B has ranged from 2.90 to 5.22, with a median of 4.00, reflecting its solid market position [5] - Overall, Boyd Gaming appears to be undervalued based on key financial metrics and has a strong earnings outlook, making it an attractive value stock at this time [6]

Core Insights - Wall Street is experiencing a strong rally, driven by solid corporate earnings, resilient economic data, the AI boom, and retail investor enthusiasm, despite concerns over trade policy and Federal Reserve actions [1] Dividend Growth Strategy - Dividend investing is gaining traction as it provides consistent income, especially in uncertain markets, with a focus on stocks that have a strong history of year-over-year dividend growth leading to higher returns [2][4] - Stocks with a solid dividend growth history are typically mature companies, offering downside protection and acting as a hedge against market volatility [4][5] - Selected dividend growth stocks include Boyd Gaming Corporation, TE Connectivity, UGI Corporation, NetEase Inc., and Garmin Ltd., which show strong earnings revisions and growth potential [3][9] Stock Selection Criteria - Stocks selected for dividend growth should have a 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [6] - Additional criteria include 5-Year Historical Sales Growth and EPS Growth greater than zero, ensuring a strong record of revenue and earnings growth [7] - Valuation metrics such as Price/Cash Flow less than the industry average and a 52-Week Price Change greater than the S&P 500 are also important for stock selection [8] Company Profiles - **Boyd Gaming Corporation (BYD)**: A multi-jurisdictional gaming company with a positive earnings estimate revision of $0.31 and an earnings surprise of 9.12% over the past four quarters, holding a Zacks Rank 1 and a Growth Score of A [10][11] - **TE Connectivity (TEL)**: A global technology company with a solid earnings estimate revision of $0.22 and an estimated growth of 12.30%, also holding a Zacks Rank 1 and a Growth Score of B [11][12] - **UGI Corporation (UGI)**: A holding company for energy products with an estimated earnings growth rate of 2.29% and an average earnings surprise of 75.67%, holding a Zacks Rank 2 and a Growth Score of B [13] - **NetEase Inc. (NTES)**: An Internet technology company with a positive earnings estimate revision and an estimated earnings growth rate of 20.14%, holding a Zacks Rank 2 and a Growth Score of A [14] - **Garmin Ltd. (GRMN)**: An OEM of navigation equipment with a positive earnings estimate revision of $0.03 and an estimated earnings growth rate of 7.85%, holding a Zacks Rank 2 and a Growth Score of B [15]

Core Insights - Boyd Gaming Corporation has completed the sale of its 5% equity interest in FanDuel Group to Flutter Entertainment for cash proceeds of $1.758 billion [1][2] - The company plans to use the proceeds to repay existing debt and continue its strategy of investing in properties, pursuing growth opportunities, and returning capital to shareholders while maintaining a strong balance sheet [2] Company Overview - Boyd Gaming Corporation, celebrating its 50th anniversary in 2025, operates 28 gaming entertainment properties across 10 states and manages a tribal casino in northern California [4] - The company also owns and operates Boyd Interactive, a B2B and B2C online casino gaming business, and prides itself on providing outstanding entertainment experiences and customer service [4]

Financial Performance - Total revenues for Q2 2025 increased by $66.5 million, or 6.9%, to $1,034.0 million compared to Q2 2024[144] - Operating income for Q2 2025 increased by $15.3 million, or 6.7%, to $242.4 million compared to Q2 2024[146] - Net income for Q2 2025 increased by $10.5 million to $150.4 million, despite a $7.6 million increase in interest expense[149] - Total revenues for the six months ended June 30, 2025, increased by $97.5 million, or 5.1%, to $2,025.6 million compared to the prior year[145] - Total revenues for the three months ended June 30, 2025, increased to $1,034.0 million, a 6.9% increase from $967.5 million in the prior year[163] - Adjusted EBITDAR for the three months ended June 30, 2025, increased by $3.5 million, or 3.2%, compared to the prior year[167] - Adjusted EBITDAR increased by $5.2 million and $8.0 million for the three and six months ended June 30, 2025, respectively, primarily due to revenue growth from Boyd Interactive[176] - The company reported revenues of $1,965.7 million and net income of $722.9 million for the six months ended June 30, 2025[210] Revenue Breakdown - Online revenue increased by $43.1 million in Q2 2025, driven by $30.4 million in reimbursements of gaming taxes and a $10.7 million increase from Boyd Interactive's operations[144] - Gaming revenues rose by $20.6 million, or 3.2%, in Q2 2025, with a slot handle increase of 3.6% and a table game hold increase of 7.1%[144] - Gaming operations contributed approximately 65% of total revenues for Q2 2025, down from 67% in Q2 2024[151] - Online revenues increased by $66.5 million for the six months ended June 30, 2025, compared to the prior year, driven by a $44.0 million increase in reimbursements and a $21.6 million increase from Boyd Interactive's operations[175] - Total revenues for Managed & Other increased by $3.4 million and $6.3 million for the three and six months ended June 30, 2025, respectively, with Adjusted EBITDAR increasing by $2.8 million and $5.4 million[177] Expenses and Costs - Selling, general and administrative expenses as a percentage of revenues were 10.6% for Q2 2025, down from 10.9% in Q2 2024, reflecting improved revenue performance[179] - Depreciation and amortization expenses increased to $70.0 million for Q2 2025 from $65.7 million in Q2 2024, attributed to the new land-based casino and hotel renovations[182] - Interest expense increased by $6.8 million, or 15.9%, for Q2 2025 compared to the prior year, primarily due to a $638.8 million increase in the weighted average debt balance[189] Cash Flow and Capital Expenditures - Cash and cash equivalents were $320.1 million as of June 30, 2025, compared to $316.7 million at the end of 2024, with a working capital deficit of $88.8 million[192] - Net cash provided by operating activities was consistent at $461.4 million for the six months ended June 30, 2025, compared to $463.8 million in 2024[197] - Net cash outflows for investing activities totaled $375.9 million for the six months ended June 30, 2025, primarily due to capital expenditures of $294.3 million[199] Debt and Financing - As of June 30, 2025, the total outstanding principal amounts under the Credit Facility increased to $1,688.1 million from $1,300.3 million as of December 31, 2024, reflecting an increase of $387.8 million[204] - The blended interest rate for outstanding borrowings under the Credit Facility was 6.1% as of June 30, 2025[205] - The company anticipates a remaining contractual availability under the Credit Facility of $485.9 million as of June 30, 2025[204] - As of June 30, 2025, long-term variable-rate borrowings accounted for approximately 47.0% of total long-term debt[233] - A 100 basis point change in interest rates would result in an annual interest cost change of approximately $16.9 million on variable-rate borrowings[233] Strategic Initiatives - The company is focused on strategic growth opportunities, including enhancing existing properties and expanding online gaming offerings[139] - The company plans to spend approximately $250 million annually for ongoing refurbishment and maintenance, with an additional $100 million allocated for hotel renovation projects in 2025[219] - A new casino, Cadence Crossing, is expected to be constructed with a budget of $100 million, featuring 450 slots and several restaurants, replacing the existing Jokers Wild casino[220] - The company is expanding its portfolio with a $750 million resort development in Norfolk, Virginia, with plans to open a transitional casino in late 2025 and the full resort in late 2027[221] Market and Risk Factors - The company expects continued competition in the gaming market, including the expansion of online gaming and sports betting[235] - Future trends affecting the gaming industry are anticipated to influence growth opportunities and merger and acquisition activity[235] - The company is focused on maintaining the integrity of its information technology systems and compliance with government regulations[235] - There have been no material changes in exposure to market risks since the last annual report filed on February 21, 2025[233] - The company does not hold market risk sensitive instruments for trading purposes, primarily facing interest rate risk and commodity price exposure[232] - Foreign currency exchange risk is limited due to minimal cash held in Canadian bank accounts, with a potential 2x fluctuation in the USD/CAD exchange rate having negligible impact[232] - The majority of purchases for operations and construction projects are from US-based suppliers, mitigating exposure to commodity prices and tariffs[232]

The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days. Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the st ...

Core Insights - Boyd Gaming reported revenue of $1.03 billion for the quarter ended June 2025, reflecting a year-over-year increase of 6.9% and exceeding the Zacks Consensus Estimate of $980.29 million by 5.48% [1] - The company's EPS for the quarter was $1.87, up from $1.58 in the same quarter last year, surpassing the consensus EPS estimate of $1.67 by 11.98% [1] Revenue Performance - Online revenue reached $173.05 million, significantly above the six-analyst average estimate of $139.48 million, marking a year-over-year increase of 33.2% [4] - Downtown Las Vegas revenue was $55.25 million, slightly below the estimated $56.1 million, representing a decline of 4.2% year-over-year [4] - Revenue from the Midwest and South segment was $540.08 million, exceeding the average estimate of $531.53 million, with a year-over-year increase of 3.5% [4] - Managed & Other segment revenue was $36.53 million, surpassing the estimate of $34.94 million, reflecting a year-over-year increase of 10.4% [4] - Las Vegas Locals revenue was $229.09 million, above the estimated $221.91 million, with a year-over-year increase of 1.8% [4] Adjusted EBITDAR Analysis - Adjusted EBITDAR for Online was $22.24 million, exceeding the estimate of $18.72 million [4] - Adjusted EBITDAR for Managed & Other was $25.96 million, above the average estimate of $24.01 million [4] - Adjusted EBITDAR for Corporate expense was -$23.87 million, slightly better than the estimate of -$24.38 million [4] - Adjusted EBITDAR for Downtown Las Vegas was $19.41 million, below the average estimate of $20.91 million [4] - Adjusted EBITDAR for Midwest and South was $201.4 million, exceeding the estimate of $195.56 million [4] - Adjusted EBITDAR for Las Vegas Locals was $112.71 million, above the average estimate of $105.06 million [4] Stock Performance - Boyd's shares have returned +6.9% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - Boyd Gaming reported quarterly earnings of $1.87 per share, exceeding the Zacks Consensus Estimate of $1.67 per share, and up from $1.58 per share a year ago, representing an earnings surprise of +11.98% [1] - The company achieved revenues of $1.03 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.48%, compared to revenues of $967.51 million in the same quarter last year [2] - Boyd has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - Boyd's stock has increased approximately 15.1% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the next quarter is $1.44 on revenues of $850.45 million, and for the current fiscal year, it is $6.50 on revenues of $3.7 billion [7] Group 3 - The Zacks Industry Rank indicates that the Gaming industry is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Bally's, another company in the Gaming industry, is expected to report a quarterly loss of $0.23 per share, with a year-over-year change of +72.3%, and revenues projected at $653.85 million, up 5.2% from the previous year [9]