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Penn National (PENN) Q1 Earnings Lag Estimates, Revenues Top
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Penn National Gaming, Inc. (PENN - Free Report) reported mixed first-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top line rose year over year, while the bottom line declined on a year-over-year basis. Following the results, the company’s shares dropped 5.6% during trading hours on May 5.
Earnings & Revenue Discussion
In the quarter under review, the company reported adjusted earnings per share (EPS) of 29 cents missing the Zacks Consensus Estimate of 45 cents by 35.6%. The bottom line fell 47.3% from 55 cents reported in the prior-year quarter.
During the first quarter, total revenues of $1,564.2 million beat the Zacks Consensus Estimate of $1,535 million by 1.9%. The top line surged 22.7% on a year-over-year basis. The upside was primarily backed by omni-channel strategy, technological investments and improved visitation from younger demographics.
Penn National Gaming, Inc. Price, Consensus and EPS Surprise
The Northeast segment delivered revenues of $658.5 million, up 15.3% year over year. The South, West, Midwest, Interactive and Other segments’ revenues were $341.4 million, $140.9 million, $282.9 million, $141.5 million and $7.3 million, up 15.4%, 45.9%, 20.5%, 64% and 356.3% year over year, respectively.
Operating Headlines
Adjusted EBITDAR rose 10.7% from the year-ago quarter’s level to $494.7 million. Adjusted EBITDAR margin contracted 344 basis points to 31.6%.
Other Financial Information
As of Mar 31, 2022, the company had cash and cash equivalents of $1,805.5 million compared with $1,863.9 million as of Dec 31, 2021. Bank debt as of Mar 31, 2022, was $1,543.2 million, down from $1,563.7 million at the 2021-end.
For the first quarter, the company repurchased 3,802,408 shares of its common stock worth approximately $175.1 million. The company stated the availability of $574.9 million under its $750 million repurchase program.
2022 Guidance
For 2022, the company anticipates net revenues in the range of $6.15-$6.55 billion, up from the prior estimate of $6.07-$6.39 billion. Adjusted EBITDAR for 2022 is expected in the range of $1.9-$2 billion, up from the prior estimate of $1.85-$1.95 billion.
Clarus sports a Zacks Rank #1 (Strong Buy) at present. The company has a trailing four-quarter earnings surprise of 12.3%, on average. Shares of the company have increased 14.2% in the past year.
The Zacks Consensus Estimate for CLAR’s 2022 sales and earnings per share (EPS) suggests growth of 25.3% and 22.5%, respectively, from the year-ago period’s levels.
Bluegreen Vacations sports a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has increased 43.2% in the past year.
The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 8.3% and 20.8%, respectively, from the year-ago period’s reported levels.
Funko sports a Zacks Rank #1. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 34.3% in the past year.
The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 22.6% and 26.8%, respectively, from the year-ago period’s reported levels.
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Penn National (PENN) Q1 Earnings Lag Estimates, Revenues Top
Penn National Gaming, Inc. (PENN - Free Report) reported mixed first-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top line rose year over year, while the bottom line declined on a year-over-year basis. Following the results, the company’s shares dropped 5.6% during trading hours on May 5.
Earnings & Revenue Discussion
In the quarter under review, the company reported adjusted earnings per share (EPS) of 29 cents missing the Zacks Consensus Estimate of 45 cents by 35.6%. The bottom line fell 47.3% from 55 cents reported in the prior-year quarter.
During the first quarter, total revenues of $1,564.2 million beat the Zacks Consensus Estimate of $1,535 million by 1.9%. The top line surged 22.7% on a year-over-year basis. The upside was primarily backed by omni-channel strategy, technological investments and improved visitation from younger demographics.
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 delivered revenues of $658.5 million, up 15.3% year over year. The South, West, Midwest, Interactive and Other segments’ revenues were $341.4 million, $140.9 million, $282.9 million, $141.5 million and $7.3 million, up 15.4%, 45.9%, 20.5%, 64% and 356.3% year over year, respectively.
Operating Headlines
Adjusted EBITDAR rose 10.7% from the year-ago quarter’s level to $494.7 million. Adjusted EBITDAR margin contracted 344 basis points to 31.6%.
Other Financial Information
As of Mar 31, 2022, the company had cash and cash equivalents of $1,805.5 million compared with $1,863.9 million as of Dec 31, 2021. Bank debt as of Mar 31, 2022, was $1,543.2 million, down from $1,563.7 million at the 2021-end.
For the first quarter, the company repurchased 3,802,408 shares of its common stock worth approximately $175.1 million. The company stated the availability of $574.9 million under its $750 million repurchase program.
2022 Guidance
For 2022, the company anticipates net revenues in the range of $6.15-$6.55 billion, up from the prior estimate of $6.07-$6.39 billion. Adjusted EBITDAR for 2022 is expected in the range of $1.9-$2 billion, up from the prior estimate of $1.85-$1.95 billion.
Zacks Rank & Key Picks
Penn National currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Consumer Discretionary sector are Clarus Corporation (CLAR - Free Report) , Bluegreen Vacations Holding Corporation and Funko, Inc. (FNKO - Free Report) .
Clarus sports a Zacks Rank #1 (Strong Buy) at present. The company has a trailing four-quarter earnings surprise of 12.3%, on average. Shares of the company have increased 14.2% in the past year.
The Zacks Consensus Estimate for CLAR’s 2022 sales and earnings per share (EPS) suggests growth of 25.3% and 22.5%, respectively, from the year-ago period’s levels.
Bluegreen Vacations sports a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has increased 43.2% in the past year.
The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 8.3% and 20.8%, respectively, from the year-ago period’s reported levels.
Funko sports a Zacks Rank #1. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 34.3% in the past year.
The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 22.6% and 26.8%, respectively, from the year-ago period’s reported levels.