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Penn National (PENN) Q1 Earnings & Revenues Beat Estimates

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Penn National Gaming, Inc. (PENN - Free Report) reported strong first-quarter 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Notably, both the metrics beat the consensus mark after missing the same in the preceding two quarters.

Despite the pandemic, the company is confident about its long-term growth strategy and Barstool profit. The company launched Barstool Sportsbook app in Michigan and Illinois in first-quarter 2021 and is confident about expanding it to at least 10 states by the end of 2021.

Jay Snowden, president and CEO said “We remain focused on garnering top-three gaming revenue market share for the Barstool Sportsbook and driving best in class profitability. Since launching our product just over seven months ago, we have registered more than 400,000 customers and generated over $660 million and $61 million in handle and gaming revenue, respectively.”

Earnings & Revenues Discussion

Adjusted earnings of 55 cents per share outpaced the Zacks Consensus Estimate of 30 cents. In the year-ago period, the company had reported a loss of $5.26 per share. Net revenues totaled $1,274.9 million, which beat the consensus mark of $1,144 million. The top line improved 14.2% from the year-ago quarter.

The Northeast segment reported revenues of $570.9 million, up 9.62% year over year. The South, Midwest, and Other segments’ revenues were $295.9 million, $234.7 million and $87.9 million, up 32.5%, 2.9% and 333% year over year, respectively. Meanwhile, the West segment reported revenues of $96.6million, down 23.7% year over year.

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

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

Inside the Headlines

Penn National’s income from operations rose to $216.5 million in the first quarter against ($560.6) million in the prior-year quarter. Adjusted EBITDAR jumped 77.2% from the year-ago quarter to $447 million. Moreover, adjusted EBITDAR margin expanded to 35.1% from 22.6% a year ago.

Other Financial Information

At first quarter-end, cash and cash equivalents increased to $2,062.2 million from $1,853.8 million as of Dec 31, 2020. Bank debt as of Mar 31, 2021 was $1,612 million, down from $1,628.1 million on Dec 31, 2020.

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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