Penn National Gaming
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Penn National Gaming missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins shrank, net margins dropped.
Penn National Gaming reported revenue of $743.8 million. The 18 analysts polled by S&P Capital IQ predicted revenue of $760.0 million on the same basis. GAAP reported sales were 10.0% higher than the prior-year quarter's $676.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.28. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. GAAP EPS of $0.19 for Q4 were 54% lower than the prior-year quarter's $0.41 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.6%, 220 basis points better than the prior-year quarter. Operating margin was 9.9%, 580 basis points worse than the prior-year quarter. Net margin was 2.7%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $835.0 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $3.28 billion. The average EPS estimate is $2.67.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 343 members out of 374 rating the stock outperform, and 31 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Penn National Gaming a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Penn National Gaming is outperform, with an average price target of $54.67.
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