Penn National Gaming, Inc. (PENN - Free Report) is riding high on revenue-boosting and cost saving initiatives. Also, the company has a widespread international presence, courtesy of its various acquisition and divestitures. However, a competitive operating environment and weather-related concerns are potential headwinds for the company. Let’s delve deeper.
Factors Driving Growth
Being a leading gaming company in the United States, Penn National is known for its prudent business strategies and strong brand recognition. Backed by its various acquisition and divestitures, the company’s presence has become largely widespread. Even then, Penn National is still continuing to expand and leverage its brand power further.
Penn National is known for its acquisition strategies that help the company expand its presence as well as improve revenue yields. In 2017, the company entered into an agreement to acquire Pinnacle Entertainment, Inc. — a leading regional gaming operator. This transaction, which is expected to close in the second half of 2018, is likely to add 11 more properties to the casino giant’s current properties.
Currently, the company derives its revenue stream from a number of sources. Given its geographical widespread, gaming revenues increased 3.3% year over year in 2017 and 4.4% in 2016. Also, food, beverage, hotel and other revenues rose 4.6% and 18.5% year over year in 2017 and 2016, respectively. Subsequently, the company’s net revenues were also up 3.7% and 6.9%, respectively, in both the years.
For 2018, the company expects revenues of $3.21 billion, up 1.9% year over year. Moreover, the consensus estimate projects revenues to grow 2.4% in 2018 when compared with that of 2017. Given the increased demand for leisure services and the company’s enormous scale, we believe that the top line will continue to grow in the near term.
Bottom Line
Per Research and Markets, the casino gaming market in the United States is expected to witness compound annual growth rate of 4.74% in the 2017-2021 period. Moreover, backed by rise in discretionary spending and lenient government regulations Penn National is about to sustain and continue with its growth story, similar to other casino giants like Wynn Resorts (WYNN - Free Report) , Melco (MLCO - Free Report) and Las Vegas Sands (LVS - Free Report) .
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Penn National Gaming, Inc. (PENN - Free Report) is riding high on revenue-boosting and cost saving initiatives. Also, the company has a widespread international presence, courtesy of its various acquisition and divestitures. However, a competitive operating environment and weather-related concerns are potential headwinds for the company. Let’s delve deeper.
Factors Driving Growth
Being a leading gaming company in the United States, Penn National is known for its prudent business strategies and strong brand recognition. Backed by its various acquisition and divestitures, the company’s presence has become largely widespread. Even then, Penn National is still continuing to expand and leverage its brand power further.
Penn National is known for its acquisition strategies that help the company expand its presence as well as improve revenue yields. In 2017, the company entered into an agreement to acquire Pinnacle Entertainment, Inc. — a leading regional gaming operator. This transaction, which is expected to close in the second half of 2018, is likely to add 11 more properties to the casino giant’s current properties.
Currently, the company derives its revenue stream from a number of sources. Given its geographical widespread, gaming revenues increased 3.3% year over year in 2017 and 4.4% in 2016. Also, food, beverage, hotel and other revenues rose 4.6% and 18.5% year over year in 2017 and 2016, respectively. Subsequently, the company’s net revenues were also up 3.7% and 6.9%, respectively, in both the years.
For 2018, the company expects revenues of $3.21 billion, up 1.9% year over year. Moreover, the consensus estimate projects revenues to grow 2.4% in 2018 when compared with that of 2017. Given the increased demand for leisure services and the company’s enormous scale, we believe that the top line will continue to grow in the near term.
Bottom Line
Per Research and Markets, the casino gaming market in the United States is expected to witness compound annual growth rate of 4.74% in the 2017-2021 period. Moreover, backed by rise in discretionary spending and lenient government regulations Penn National is about to sustain and continue with its growth story, similar to other casino giants like Wynn Resorts (WYNN - Free Report) , Melco (MLCO - Free Report) and Las Vegas Sands (LVS - Free Report) .
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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