This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Buy Pinnacle on Penn National Earnings: Analysts

NEW YORK ( TheStreet) -- Pinnacle Entertainment (PNK - Get Report) is a buy following Penn National Gaming's (PENN - Get Report) strong first-quarter results and impressive outlook.

For the three-month period, Penn earned $178 million, or 48 cents a share, above analysts' outlook of 41 cents.

Revenue rose nearly 13% to $667 million, better than the $664.4 million Wall Street forecast.

Looking ahead, Penn foresees second-quarter earnings of 47 cents a share, compared with the 41 cents analysts had projected. For the full-year it is calling for a profit of $1.64 a share, also better than estimates of $1.53.

"We think Penn's solid first-quarter results speak to the rational promotional and comping environment across most regional gaming markets, allowing for the regional casinos to generate stronger profitability and improved EBITDA margins," J.P. Morgan analyst Joseph Greff, wrote in a note. "We believe that this has positive, lateral implications for Pinnacle, who should benefit from these trends as well as its own company-specific efficiency initiatives."

Pinnacle is scheduled to report its first-quarter results on April 28, and analysts are calling for a profit of 4 cents a share on revenue of $289.5 million.

"We believe Penn's guidance speaks to the comfort level management has in the recovering domestic gaming patron in 2011 and the ability to expand margins without assuming considerable boosts in patron spend," Wells Fargo analyst Carlo Santarelli wrote in a note. "We would be buyers of Pinnacle for this reason as well."

--Written by Jeanine Poggi in New York.



>To contact the writer of this article, click here: Jeanine Poggi.

>To follow the writer on Twitter, go to http://twitter.com/jpoggi.

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG
PENN $15.89 0.00%
PNK $36.46 0.00%
AAPL $125.01 0.00%
FB $78.10 0.00%
GOOG $524.22 0.00%

Markets

DOW 17,841.98 -86.22 -0.48%
S&P 500 2,080.15 -9.31 -0.45%
NASDAQ 4,919.6440 -19.6830 -0.40%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs