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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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. The Motley Fool has no position in any of the stocks mentioned. 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.