Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of gaming company Pinnacle Entertainment (NYS: PNK) rose as much as 10% today after reporting earnings.
So what: Revenue rose 2.8% in the third quarter to $304.2 million, which was just short of estimates. But adjusted earnings per share were $0.30, which was $0.12 ahead of estimates.
Now what: The numbers look good if you're looking only at estimates, but Pinnacle still lost $358,000 in the quarter, and revenue growth was anemic. There's no sign that Pinnacle or most other regional gaming companies are going to see significant growth on either the top or bottom line anytime soon, so I would be cautious about the bounce. Income from continuing operations is actually down year over year, which should garner more attention than how an adjusted number performs against Wall Street's expectation.
Interested in more info on Pinnacle Entertainment? Add it to your Watchlist by clicking here.
The article Why Pinnacle Entertainment's Shares Popped originally appeared on Fool.com.
Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.