Boyd Gaming Earnings: An Early Look

Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Boyd Gaming is one of them. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise.

Boyd Gaming doesn't have the exposure to Asian gaming mecca Macau that most investors in the industry find so attractive. But recent events have made investors take a closer look at this domestically focused company. Let's take an early look at what's been happening with Boyd Gaming over the past quarter and what we're likely to see in its quarterly report on Monday.

Stats on Boyd Gaming

Analyst EPS Estimate

($0.13)

Year-Ago EPS

($0.03)

Revenue Estimate

$635 million

Change From Year-Ago Revenue

4.7%

Earnings Beats in Past 4 Quarters

1


Source: Yahoo! Finance.

Will Boyd Gaming be a winning bet this quarter?
Analysts have gotten a lot more optimistic about Boyd's long-term prospects. Although they've kept their estimates for the just-ended quarter fairly stable, they've boosted their full-year 2013 earnings-per-share consensus by $0.50, going from a loss to a $0.45 profit. The stock has also vaulted higher, gaining 25% since late November.

The gaming industry has been a tale of two segments for years. On one hand, Asian gaming has grown by leaps and bounds, leading to strong profits for U.S.-based casino giants with extensive operations in Macau. By contrast, U.S. gaming has been in a slump for a long time, with even Las Vegas having difficulty sustaining growth. For Boyd and other companies that have focused on more local markets throughout the nation, the economic recession has hit even harder.

But investors have focused on the potential for U.S. online gaming as a potential game-changer for the industry. The recent decision from New Jersey Governor Chris Christie to legalize online gaming in his state for a 10-year trial period has led to big gains for Boyd and Caesars Entertainment , both of which have casinos in Atlantic City and stand to benefit from the law. Moreover, Boyd has an agreement with MGM Resorts as well as the company that owns the popular Party Poker site, and having those companies on its side should help Boyd ramp up its online operations.

In its report, Boyd will need to demonstrate the full potential of the New Jersey legislation. With investors having widely disparate views on how big an impact online gaming may have on the company, Boyd can build a lot of credibility if it presents a reasoned analysis of its financial effects.

Among gaming stocks, MGM is one of the most interesting, with exposure to Macau and Vegas. The Chinese gaming enclave now holds the key to the company's future, and a new resort on Cotai may relieve the company from crushing debt. For expert analysis on whether this former high-flying stock can regain its form on the back of a growing presence in Asia, you're invited to check out The Motley Fool's new premium report on MGM Resorts. As a bonus, you'll receive a full year of key updates and guidance as news develops, so don't miss out -- simply click here now to claim your copy today.

Click here to add Boyd Gaming to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

The article Boyd Gaming Earnings: An Early Look originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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