Pinnacle Entertainment (NYSE: PNK ) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Pinnacle Entertainment missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Pinnacle Entertainment logged revenue of $315.3 million. The 18 analysts polled by S&P Capital IQ looked for revenue of $322.6 million on the same basis. GAAP reported sales were 5.7% higher than the prior-year quarter's $298.3 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 $0.21. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. Non-GAAP EPS of $0.21 for Q2 were 28% lower than the prior-year quarter's $0.29 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS were -$0.09 for Q2 against $0.19 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 41.8%, much worse than the prior-year quarter. Operating margin was 7.9%, 540 basis points worse than the prior-year quarter. Net margin was -1.6%, 560 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $326.4 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $1.28 billion. The average EPS estimate is $0.89.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 118 members out of 179 rating the stock outperform, and 61 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Pinnacle Entertainment a green thumbs-up, and 14 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 $20.18.
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