Penn National Gaming, Inc. (PENN - Free Report) is set to release third-quarter 2018 results on Nov 1, before market opens. Notably, the company’s earnings have surpassed the Zacks Consensus Estimate in five out of the trailing seven quarters.
Q3 Expectations
The Zacks Consensus Estimate for third-quarter earnings is pegged at 44 cents, which marks an increase of 62.9% from the year-ago quarter. Revenues are estimated at $807.3 million, reflecting a marginal gain of 0.1% from a year ago.
Let’s delve into the factors that are expected to have had an impact on the company’s Q3 performance.
Factors at Play
Penn National continues to improve its gaming, hotel, and food and beverage offerings in order to drive revenues. Given the increased demand for leisure services and the company’s enormous scale, we believe that the top line will continue to grow. Also, visitation and spend per visit are expected to drive the overall gaming revenues.
The Zacks Consensus Estimate for net revenues at the Northeast segment is pegged at $401 million, indicating a drop of 0.2% from the year-ago quarter and 5.2% from the last reported quarter. The consensus estimate for South/West segment revenues stands at $163 million, reflecting a rise of 1.9% year over year and a decline of 2.4% on a sequential basis. The consensus estimate for the Midwest segment revenues is at $233 million, reflecting a rise of 0.4% year over year and 0.9% on a sequential basis.
Moreover, the company continues to adopt initiatives to improve margin and looks for opportunities to enhance operational efficiency. The company expects $100 million of cost synergies. In fact, the company reported adjusted EBITDA margin growth in the second quarter of 2018 through ongoing refinements in procurement, marketing and labor management. Thus, these cost-saving strategies will reap recurring benefits in the near term.
Penn National Gaming, Inc. Price and Consensus
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 >>
Penn National Gaming, Inc. (PENN - Free Report) is set to release third-quarter 2018 results on Nov 1, before market opens. Notably, the company’s earnings have surpassed the Zacks Consensus Estimate in five out of the trailing seven quarters.
Q3 Expectations
The Zacks Consensus Estimate for third-quarter earnings is pegged at 44 cents, which marks an increase of 62.9% from the year-ago quarter. Revenues are estimated at $807.3 million, reflecting a marginal gain of 0.1% from a year ago.
Let’s delve into the factors that are expected to have had an impact on the company’s Q3 performance.
Factors at Play
Penn National continues to improve its gaming, hotel, and food and beverage offerings in order to drive revenues. Given the increased demand for leisure services and the company’s enormous scale, we believe that the top line will continue to grow. Also, visitation and spend per visit are expected to drive the overall gaming revenues.
The Zacks Consensus Estimate for net revenues at the Northeast segment is pegged at $401 million, indicating a drop of 0.2% from the year-ago quarter and 5.2% from the last reported quarter. The consensus estimate for South/West segment revenues stands at $163 million, reflecting a rise of 1.9% year over year and a decline of 2.4% on a sequential basis. The consensus estimate for the Midwest segment revenues is at $233 million, reflecting a rise of 0.4% year over year and 0.9% on a sequential basis.
Moreover, the company continues to adopt initiatives to improve margin and looks for opportunities to enhance operational efficiency. The company expects $100 million of cost synergies. In fact, the company reported adjusted EBITDA margin growth in the second quarter of 2018 through ongoing refinements in procurement, marketing and labor management. Thus, these cost-saving strategies will reap recurring benefits in the near term.
Penn National Gaming, Inc. Price and Consensus
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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