Penn National Gaming Misses Where It Counts

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Penn National Gaming (NAS: PENN) reported earnings today. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Penn National Gaming met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.

Gross margins contracted, operating margins grew, net margins expanded.

Revenue details
Penn National Gaming logged revenue of $676.5 million. The 14 analysts polled by S&P Capital IQ looked for revenue of $677.2 million. Sales were 7.3% higher than the prior-year quarter's $630.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.41. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. GAAP EPS were $0.41 for Q4 versus -$1.97 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.4%, 70 basis points worse than the prior-year quarter. Operating margin was 15.7%, 140 basis points better than the prior-year quarter. Net margin was 6.5%, 3,080 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $708.2 million. On the bottom line, the average EPS estimate is $0.57.

Next year's average estimate for revenue is $2.96 billion. The average EPS estimate is $2.26.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 344 members rating the stock outperform, and 31 members rating it underperform. Among CAPS All-Stars (recommendations by the highest-ranked CAPS members), 101 give Penn National Gaming a green thumbs-up, and five 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 $44.56.

At the time this article was published 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 ofMotley 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.

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