Penn National Gaming
The 10-second takeaway
For the quarter ended June 30 (Q2), Penn National Gaming missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins shrank, net margins dropped.
Penn National Gaming booked revenue of $761.4 million. The 18 analysts polled by S&P Capital IQ hoped for net sales of $776.5 million on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $712.6 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 $0.80. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.63 per share. Non-GAAP EPS of $0.80 for Q2 were 27% higher than the prior-year quarter's $0.63 per share. GAAP EPS were -$0.16 for Q2 against $0.63 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 43.4%, 180 basis points better than the prior-year quarter. Operating margin was 15.9%, 160 basis points worse than the prior-year quarter. Net margin was -1.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $782.4 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $3.11 billion. The average EPS estimate is $2.49.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 348 members out of 379 rating the stock outperform, and 31 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Penn National Gaming a green thumbs-up, and five give it a red thumbs-down.
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