The 10-second takeaway
For the quarter ended March 31 (Q1), Pinnacle Entertainment met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share dropped significantly. GAAP loss per share expanded.
Margins dropped across the board.
Pinnacle Entertainment reported revenue of $312.6 million. The 19 analysts polled by S&P Capital IQ wanted to see net sales of $314.7 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $293.0 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 $0.25. The 17 earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. Non-GAAP EPS of $0.25 for Q1 were 24% lower than the prior-year quarter's $0.33 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS were -$1.46 for Q1 against -$0.02 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 42.2%, much worse than the prior-year quarter. Operating margin was 11.6%, 320 basis points worse than the prior-year quarter. Net margin was -27.3%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $329.3 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $1.29 billion. The average EPS estimate is $0.85.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 117 members out of 176 rating the stock outperform, and 59 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Pinnacle Entertainment a green thumbs-up, and 13 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 $16.61.
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