Penn National Gaming
The 10-second takeaway
For the quarter ended March 31 (Q1), Penn National Gaming met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank. GAAP earnings per share contracted.
Gross margins expanded, operating margins contracted, net margins shrank.
Penn National Gaming reported revenue of $798.2 million. The 17 analysts polled by S&P Capital IQ foresaw a top line of $803.4 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $736.1 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 $0.69. The 17 earnings estimates compiled by S&P Capital IQ anticipated $0.65 per share. Non-GAAP EPS of $0.69 for Q1 were 5.5% lower than the prior-year quarter's $0.73 per share. GAAP EPS of $0.63 for Q1 were 15% lower than the prior-year quarter's $0.74 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 43.3%, 140 basis points better than the prior-year quarter. Operating margin was 16.7%, 220 basis points worse than the prior-year quarter. Net margin was 8.2%, 250 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $804.7 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $3.17 billion. The average EPS estimate is $2.50.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 342 members out of 374 rating the stock outperform, and 32 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Penn National Gaming a green thumbs-up, and seven 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 $56.41.
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