Penn National Gaming Goes Red
Penn National Gaming (NAS: PENN) reported earnings on July 23. Here are the numbers you need to know.
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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The article Penn National Gaming Goes Red originally appeared on Fool.com.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.
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