Q: Can you comment on Boyd earnings release and just the market reaction to the stock over the last 3 months?
Thanks
Thanks
5i Research Answer:
EPS of 58c missed estimates of 59c; revenue of $996M beat estimates of $975.3M. EBITDA of $122M beat estimates by 4%. Sales were a record, but same store sales growth was 1.7%, missing estimates of 2.1%. EBITDA rose 52%. BYD notes it is seeing signs of 'industry normalization' but this was its sixth quarter of partially missed estimates in the past eight quarters. Investors are frustrated at the weak same store growth, and there is some cost pressure here. With negative momentum we think investors are going to have to wait longer for a turn.