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Penn National (PENN) Surges on Q2 Earnings & Revenues Beat
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Penn National Gaming, Inc. (PENN - Free Report) reported strong second-quarter 2021 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Also, the top and the bottom line increased on a year-over-year basis. Following the results, shares of the company rose 9% during trading hours on Aug 5.
The company is confident about its long-term growth strategy and Barstool profits. Following its Indiana launch during May 2021, the company expects to more than double its footprint by the start of the 2021 NFL season during early September, mainly due to the upcoming launches in Colorado, New Jersey, Tennessee, Virginia and Arizona. Notably, Penn National is optimistic about expanding its operations to at least 10 states by the end of 2021.
Jay Snowden, president and CEO, said “The strong results were driven by exceptional performance across our portfolio of core gaming business properties. Contributions from Barstool Sports, the media company, were also positive. Further, we saw strong revenue growth across our Penn Interactive segment, which operated near breakeven for the quarter despite being live in only four states.”
Earnings & Revenues Discussion
Adjusted earnings of $1.17 per share outpaced the Zacks Consensus Estimate of 93 cents by 25.8%. In the year-ago period, the company had reported a loss of $1.69 per share. Net revenues totaled $1,545.8 million, which beat the consensus mark of $1,462 million. The top line improved 406% from the year-ago quarter.
The Northeast segment reported revenues of $652.5 million, up 535.3% year over year. The South, Midwest, and Other segments’ revenues were $368.2 million, $294.8 million and $97.7 million, up 203%, 718.9% and 254% year over year, respectively. Meanwhile, the West segment reported revenues of $140.4 million, up 693.2% year over year.
Penn National Gaming, Inc. Price, Consensus and EPS Surprise
Penn National’s income from operations rose to $377.9 million in the second quarter against ($165.4) million in the prior-year quarter. Adjusted EBITDAR jumped 2294.3% from the year-ago quarter to $586.6 million. Moreover, adjusted EBITDAR margin expanded to 37.9% from 8% a year ago.
Other Financial Information
At second quarter-end, cash and cash equivalents increased to $2,274.7 million from $2,062.2 million as of Mar 31, 2021. Notably, bank debt as of Jun 30, 2021, was $1,595.9 million, down from $1,612 million on Mar 31, 2021.
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Penn National (PENN) Surges on Q2 Earnings & Revenues Beat
Penn National Gaming, Inc. (PENN - Free Report) reported strong second-quarter 2021 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Also, the top and the bottom line increased on a year-over-year basis. Following the results, shares of the company rose 9% during trading hours on Aug 5.
The company is confident about its long-term growth strategy and Barstool profits. Following its Indiana launch during May 2021, the company expects to more than double its footprint by the start of the 2021 NFL season during early September, mainly due to the upcoming launches in Colorado, New Jersey, Tennessee, Virginia and Arizona. Notably, Penn National is optimistic about expanding its operations to at least 10 states by the end of 2021.
Jay Snowden, president and CEO, said “The strong results were driven by exceptional performance across our portfolio of core gaming business properties. Contributions from Barstool Sports, the media company, were also positive. Further, we saw strong revenue growth across our Penn Interactive segment, which operated near breakeven for the quarter despite being live in only four states.”
Earnings & Revenues Discussion
Adjusted earnings of $1.17 per share outpaced the Zacks Consensus Estimate of 93 cents by 25.8%. In the year-ago period, the company had reported a loss of $1.69 per share. Net revenues totaled $1,545.8 million, which beat the consensus mark of $1,462 million. The top line improved 406% from the year-ago quarter.
The Northeast segment reported revenues of $652.5 million, up 535.3% year over year. The South, Midwest, and Other segments’ revenues were $368.2 million, $294.8 million and $97.7 million, up 203%, 718.9% and 254% year over year, respectively. Meanwhile, the West segment reported revenues of $140.4 million, up 693.2% year over year.
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 $377.9 million in the second quarter against ($165.4) million in the prior-year quarter. Adjusted EBITDAR jumped 2294.3% from the year-ago quarter to $586.6 million. Moreover, adjusted EBITDAR margin expanded to 37.9% from 8% a year ago.
Other Financial Information
At second quarter-end, cash and cash equivalents increased to $2,274.7 million from $2,062.2 million as of Mar 31, 2021. Notably, bank debt as of Jun 30, 2021, was $1,595.9 million, down from $1,612 million on Mar 31, 2021.
Zacks Rank & Other Key Picks
Penn National carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the Zacks Gaming industry include Boyd Gaming Corporation (BYD - Free Report) , Century Casinos, Inc. (CNTY - Free Report) and Monarch Casino & Resort, Inc. (MCRI - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can the complete list of today's Zacks #1 Rank stocks here.
Boyd Gaming, Monarch Casino and Century Casinos’ 2021 earnings are earnings are expected to rise 3,120%, 193.8% and 161.6%, respectively.