Penn National Gaming Earnings: Here’s Why Investors are Not Happy Now

Penn National Gaming Inc. (NASDAQ:PENN) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.58%.

Penn National Gaming Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.16 in the quarter versus EPS of $0.63 in the year-earlier quarter.

Revenue: Rose 6.86% to $761.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Penn National Gaming Inc. reported adjusted EPS loss of $0.16 per share. By that measure, the company missed the mean analyst estimate of $0.62. It missed the average revenue estimate of $769.62 million.

Quoting Management: Peter M. Carlino, Chairman and Chief Executive Officer of Penn National Gaming, commented, “Second quarter operating results fell short of our guidance due to several factors: In addition to soft industry-wide regional gaming revenue trends, several properties in the Midwest and Southern Plains segments endured extreme weather, including tornados, flooding and construction disruption, which led to closures as well as insurance deductible charges. Other facilities were negatively impacted by competitive pressures, including marketing promotions that due to economic return considerations we elected not to match. Partially offsetting these challenges, our second quarter adjusted EBITDA includes $4.3 million of favorable tax settlements in various jurisdictions.

Key Stats (on next page)…

Revenue decreased 4.62% from $798.25 million in the previous quarter. EPS decreased to $-0.16 in the quarter versus EPS of $0.69 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.66 to a profit $0.63. For the current year, the average estimate has moved down from a profit of $2.62 to a profit of $2.52 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]