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Penn National Climbs on Revenue Guidance, $400 Million Bond Sale

Penn National's revenue guidance exceeds Wall Street's estimates. The gambling company also plans a private sale of bonds.
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Shares of Penn National Gaming  (PENN) - Get Report were higher on Thursday after the casino company said it expected second-quarter revenue to range $1.45 billion to $1.56 billion. 

Analysts polled by FactSet are expecting revenue of $1.37 billion for the period.

The Wyomissing, Pa., company also said it planned a private offering of $400 million of eight-year senior bonds. The company said it would use the funds for general purposes.

Penn National shares at last check were 1.4% higher at $77.87.

Last month Penn National reported first-quarter earnings of 55 cents a share on revenue of $1.28 billion. Analysts were expecting 26 cents a share on revenue of $1.14 billion.

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The first-quarter beat was driven by "our land-based business and the launch of our online Barstool Sportsbook in Michigan and Illinois," Chief Executive Jay Snowden said then.

The company's shares in March hit a record after the launch of its online sports betting app, Barstool Sportsbook, in Illinois. 

Penn National is the country’s largest regional casino owner, with 41 properties across 19 states.

In early May, with the stock in the mid-$80s, TheStreet.com Founder Jim Cramer recommended buying Penn National. He also recommended DraftKings  (DKNG) - Get Report

In April, analysts at Needham initiated coverage of the gambling company at buy with a $151 price target, calling the risk-reward balance compelling.

The investment firm estimated that the North America gambling market was an emerging $35 billion opportunity.