Penn National Gaming
The 10-second takeaway
For the quarter ended June 30 (Q2), Penn National Gaming met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share contracted.
Gross margins improved, operating margins contracted, net margins dropped.
Penn National Gaming booked revenue of $712.6 million. The 16 analysts polled by S&P Capital IQ looked for sales of $718.3 million on the same basis. GAAP reported sales were 3.6% higher than the prior-year quarter's $687.9 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 $0.63. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.63 per share. GAAP EPS of $0.63 for Q2 were 11% lower than the prior-year quarter's $0.71 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%, 10 basis points better than the prior-year quarter. Operating margin was 17.5%, 130 basis points worse than the prior-year quarter. Net margin was 9.4%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $723.4 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $2.91 billion. The average EPS estimate is $2.46.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 342 members out of 373 rating the stock outperform, and 31 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Penn National Gaming a green thumbs-up, and eight 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 $49.13.
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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.