Boyd Group Services 1Q Profit Falls 55%; Shares Drop 6%

Shares in Boyd Group Services (BYD) fell more than 6% Wednesday morning after the company posted lower profit and revenue in its first quarter. The pandemic significantly impacted the financial results of the operator of non-franchised collision repair centers. Additional waves have caused more restrictions and continued reduction in collision demand.

Boyd Group’s revenue came in at $421.6 million for the quarter ended March 31, a decrease of 9.9% from $467.8 million in the prior-year quarter.

Meanwhile, it posted a profit of $7.7 million ($0.36 per diluted share) in 1Q 2021, a decrease of 54.4% as compared to a profit of $17.0 million ($0.71 per diluted share) in 1Q 2020. The company reported an adjusted profit of $8.3 million ($0.39 per share) in the first quarter of 2021, much lower than the adjusted profit of $15.2 million ($0.75 per share) it posted in the first quarter of 2020.

Boyd Group’s President and CEO Timothy O’Day said, “In late Q4, we made the decision to ready ourselves for higher post-pandemic demand levels expected in 2021. This included converting all temporary intake centers in the U.S. back to full production centers, thereby adding back most of the expenses that were temporarily eliminated. Our first-quarter results reflect the expense impact of this strategic decision.” (See Boyd Group Services stock analysis on TipRanks.)

On April 30, BMO Capital analyst Jonathan Lamers maintained a Buy rating on BYD with a C$263.00 for a 20.8% upside potential.

Overall, the consensus on the Street is that BYD is a Strong Buy based on 8 Buys. The average analyst price target of C$258.49 implies an 18.7% upside potential to current levels. Shares have risen by approximately 8% over one year.