Benzinga | Feb 15, 2021 10:38AM EST

Preview: Boyd Gaming's Earnings

On Tuesday, February 16, Boyd Gaming (NYSE:BYD) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts predict Boyd Gaming will report earnings of $0.39 per share on revenue of $632.26 million. Boyd Gaming earnings in the same period a year ago was $0.5 per share. Quarterly sales came in at $833.13 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 22.0% decrease in the company's earnings. Sales would have fallen 24.11% from the same quarter last year. Boyd Gaming's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.10 -1.51 0.26 0.47EPS Actual 0.38 -0.98 -0.02 0.50Revenue Estimate 568.13 M 131.92 M 775.17 M 825.64 MRevenue Actual 652.24 M 209.86 M 680.52 M 833.13 M

Stock Performance

For a full 12 months, the return has risen by 60.5%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Boyd Gaming is scheduled to hold the call at 17:00:00 ET and can be accessed here.