Send me real-time posts from this site at my email

Penn National (PENN) Drop on Q3 Earnings Miss, Margin Fall

Penn National Gaming, Inc. PENN reported tepid third-quarter 2021 results wherein earnings lagged the Zacks Consensus Estimate while revenues marginally beat the same. On a year-over-year basis, earnings fell significantly despite revenue growth. Following the results, shares of the company declined 21.1% during the trading hours on Nov 4.

Jay Snowden, president and CEO, said “While July was a record month, the second half of August and September was impacted by Hurricane Ida and regional flare-ups of the Delta variant, which reduced property Adjusted EBITDAR and Adjusted EBITDAR margins by an estimated $30 million and 85 basis points, respectively. As the operating environment has normalized, we have seen improved results in October. Further, Other Segment results included a $12.5 million lobbying expense to support the California sports betting initiative and $7.5 million in expenses related to new state launches of our Barstool Sportsbook app.”

Earnings & Revenue Discussion

Adjusted earnings of 52 cents per share missed the Zacks Consensus Estimate of 84 cents by 38.1% and declined 44.1% year over year. Net revenues totaled $1,511.8 million, which beat the consensus mark of $1,500 million and improved 33.8% from the year-ago quarter’s level.

Penn National Gaming, Inc. Price, Consensus and EPS Surprise

Penn National Gaming, Inc. price-consensus-eps-surprise-chart | Penn National Gaming, Inc. Quote

The Northeast segment reported revenues of $672.4 million, up 23.4% year over year. The South, West, Midwest and Other segments’ revenues were $318.2 million, $145.7 million, $285.7 million and $96.5 million, up 24.5%, 85.1%, 24.7% and 307.2% year over year, respectively.

Operating Headlines

Adjusted EBITDAR rose 6.1% from the year-ago quarter’s level to $480.3 million. Adjusted EBITDAR margin, however, contracted 830 basis points to 31.89% from 40.1% a year ago.

Other Financial Information

At the third quarter-end, cash and cash equivalents increased to $2.73 billion from $1.85 billion as of Dec 31, 2020. Bank debt as of Sep 30, 2021 was $1.58 billion, down from $1.63 billion at 2020 end.

Zacks Rank & Key Picks

Penn National carries a Zacks Rank #3 (Hold), currently. You can the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the Zacks Gaming industry are Churchill Downs Incorporated CHDN, Golden Entertainment, Inc. GDEN and Accel Entertainment, Inc. ACEL. While Churchill Downs and Golden Entertainment sport a Zacks Rank #1, Accel Entertainment carries a Zacks Rank #2 (Buy) at present.

Earnings of Churchill Downs, Golden Entertainment and Accel Entertainment for 2021 are expected to rise 673.5%, 232.1% and 957.1%, respectively.

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100S of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Penn National Gaming, Inc. (PENN): Free Stock Analysis Report
Churchill Downs, Incorporated (CHDN): Free Stock Analysis Report
Golden Entertainment, Inc. (GDEN): Free Stock Analysis Report
Accel Entertainment, Inc. (ACEL): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue