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Penn National (PENN) Rises Despite Q4 Earnings & Revenues Miss
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Penn National Gaming, Inc. (PENN - Free Report) reported fourth-quarter 2020 results, with earnings and revenues missing the Zacks Consensus Estimate. Notably, both the metrics missed the consensus mark after beating in the preceding two quarters.
Despite reporting lower-than-expected results, shares of the company gained 8.5% in the after-hours trading session on Feb 4. Despite the pandemic, the company is confident about its long-term growth strategy and Barstool profit. The company launched Barstool Sportsbook app in Michigan last month and is confident about expanding it to at least 10 states by the end of 2021.
Jay Snowden, president and chief executive officer, has said "Our investment in Barstool Sports provides us with a fully integrated media platform to support our evolution from the nation’s largest regional gaming operator to the best-in-class omnichannel provider of retail and online gaming and sports betting entertainment."
Earnings & Revenues Discussion
Adjusted earnings came in at 7 cents per share, missing the Zacks Consensus Estimate of 21 cents. In the year-ago period, the company had reported a loss of 80 cents per share.Net revenues totaled $1,027.4 million, which missed the consensus mark of $1,074 million by 4.3%. Also, the top line declined 23.4% from the year-ago quarter.
Penn National Gaming, Inc. Price, Consensus and EPS Surprise
The Northeast segment reported revenues of $470.8 million, down 24.2% year over year. The South, Midwest, and West segments’ revenues were $249.2 million, $188.2 million and $79.5 million, down 7%, 32.6% and 49.7% year over year, respectively. Meanwhile, the Other segment reported revenues of $53.4 million, up 242.3% year over year.
Inside the Headlines
Penn National’s income from operations declined to $119.6 million in the fourth quarter compared with $11.3 million in the prior-year quarter. Adjusted EBITDAR decreased 8.5% from the year-ago quarter to $365.4 million. Moreover, adjusted EBITDAR margin expanded to 35.6% from 29.8% a year ago.
Other Financial Information
At fourth quarter-end, cash and cash equivalents increased to $1,853.8 million from $437.4 million as of Dec 31, 2019. Bank debt as of Dec 31, 2020 was $1,628.1 million, down from $1,929.8 million on Dec 31, 2019.
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Penn National (PENN) Rises Despite Q4 Earnings & Revenues Miss
Penn National Gaming, Inc. (PENN - Free Report) reported fourth-quarter 2020 results, with earnings and revenues missing the Zacks Consensus Estimate. Notably, both the metrics missed the consensus mark after beating in the preceding two quarters.
Despite reporting lower-than-expected results, shares of the company gained 8.5% in the after-hours trading session on Feb 4. Despite the pandemic, the company is confident about its long-term growth strategy and Barstool profit. The company launched Barstool Sportsbook app in Michigan last month and is confident about expanding it to at least 10 states by the end of 2021.
Jay Snowden, president and chief executive officer, has said "Our investment in Barstool Sports provides us with a fully integrated media platform to support our evolution from the nation’s largest regional gaming operator to the best-in-class omnichannel provider of retail and online gaming and sports betting entertainment."
Earnings & Revenues Discussion
Adjusted earnings came in at 7 cents per share, missing the Zacks Consensus Estimate of 21 cents. In the year-ago period, the company had reported a loss of 80 cents per share.Net revenues totaled $1,027.4 million, which missed the consensus mark of $1,074 million by 4.3%. Also, the top line declined 23.4% from the year-ago quarter.
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 $470.8 million, down 24.2% year over year. The South, Midwest, and West segments’ revenues were $249.2 million, $188.2 million and $79.5 million, down 7%, 32.6% and 49.7% year over year, respectively. Meanwhile, the Other segment reported revenues of $53.4 million, up 242.3% year over year.
Inside the Headlines
Penn National’s income from operations declined to $119.6 million in the fourth quarter compared with $11.3 million in the prior-year quarter. Adjusted EBITDAR decreased 8.5% from the year-ago quarter to $365.4 million. Moreover, adjusted EBITDAR margin expanded to 35.6% from 29.8% a year ago.
Other Financial Information
At fourth quarter-end, cash and cash equivalents increased to $1,853.8 million from $437.4 million as of Dec 31, 2019. Bank debt as of Dec 31, 2020 was $1,628.1 million, down from $1,929.8 million on Dec 31, 2019.
Zacks Rank
Penn National — which shares space with Wynn Resorts (WYNN - Free Report) , Las Vegas Sands Corp. (LVS - Free Report) and Boyd Gaming Corporation (BYD - Free Report) in the Zacks Gaming industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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