Why Penn National Gaming (PENN) Stock Is Lower Today

NEW YORK (TheStreet) -- Shares of Penn National Gaming Inc. (PENN) are lower -6.61% to $12.07 on Thursday after the company's first quarter 2014 profit fell and it lowered its fiscal 2014 outlook.

The company, which owns and manages 25 gaming and pari-mutuel properties across 18 states, reported its first quarter net income was $4.54 million or $0.05 per share, down from $65.27 million or $0.63 per share, in the same quarter for 2013.

First quarter 2014 net revenue also fell, to $641.08 million from $798.25 million in the same quarter in 2013.

For fiscal 2014, the company lowered its expected net income to $10.4 million or $0.12 per share on $2.51 billion in revenue, from $21.9 million or $0.24 per share, on $2.63 billion in revenue.

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TheStreet Ratings team rates PENN NATIONAL GAMING INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate PENN NATIONAL GAMING INC (PENN) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."

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