The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Pinnacle Entertainment missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Pinnacle Entertainment reported revenue of $301.6 million. The 16 analysts polled by S&P Capital IQ expected a top line of $310.5 million on the same basis. GAAP reported sales were 9.4% higher than the prior-year quarter's $275.8 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 $0.03. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. GAAP EPS were -$0.72 for Q4 versus $0.40 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.2%, 3,750 basis points worse than the prior-year quarter. Operating margin was 7.6%, 450 basis points worse than the prior-year quarter. Net margin was -14.1%, 2,320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $330.1 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $1.31 billion. The average EPS estimate is $1.00.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 118 members out of 177 rating the stock outperform, and 59 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Pinnacle Entertainment a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pinnacle Entertainment is outperform, with an average price target of $16.57.
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