The 10-second takeaway
For the quarter ended March 31 (Q1), Pinnacle Entertainment beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped to a loss.
Gross margins expanded, operating margins increased, net margins contracted.
Pinnacle Entertainment reported revenue of $293.0 million. The 15 analysts polled by S&P Capital IQ hoped for revenue of $287.7 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $280.1 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 $0.33. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.20 per share. GAAP EPS were -$0.02 for Q1 compared to $0.04 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 69.6%, 170 basis points better than the prior-year quarter. Operating margin was 14.8%, 310 basis points better than the prior-year quarter. Net margin was -0.3%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $295.2 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $1.22 billion. The average EPS estimate is $0.85.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 115 members out of 172 rating the stock outperform, and 57 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Pinnacle Entertainment a green thumbs-up, and 16 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 $15.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.