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Penn National Gaming stock falls after profit falls below expectations, while revenue tops forecasts

The replaces an earlier item that incorrectly reported revenue. It has been corrected.

Shares of Penn National Gaming Inc. (PENN) slumped 1.3% in premarket trading Thursday, after the online gaming and sports betting company and Barstool Sports partner reported second-quarter profit that missed expectations but revenue that topped, as rising expenses led to a drop in margins. Net income dropped to $26.1 million, or 15 cents a share, from $198.7 million, or $1.17 a share, in the year-ago period. The FactSet consensus was for earnings per share of 50 cents. Revenue rose 5.2% to $1.63 billion, above the FactSet consensus of $1.60 billion, as gaming revenue increased 1.5% to $1.33 billion and food, beverage, hotel and other revenue jumped 25.4% to $301.3 million. Total operating expenses increased more than revenue, rising 13.4% to $1.32 billion, as operating income as a percent of revenue contracted to 18.6% from 24.4%. The company reiterated its 2022 revenue guidance of $6.15 billion to $6.55 billion. The stock has shed 5.5% over the past three months through Wednesday, while the S&P 500 has lost 3.4%.

-Tomi Kilgore

 

(END) Dow Jones Newswires

08-04-22 0903ET

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