NEW YORK (TheStreet) -- Pinnacle Entertainment (PNK) shares are down 4.6% to $24.46 in trading on Thursday after the gaming company reported a third quarter earnings miss before the opening bell today.
The company reported net income of $12.5 million, or 20 cents per diluted share on an adjusted basis, less than half of the 46 cents per diluted share Wall Street analysts were expecting for the period.
The company generated $568.3 million in revenue, ahead of analysts' $564.3 million estimates by $4 million.
In separate news, the company announced that it plans to separate its real estate assets from its operating assets in an effort to increase long-term shareholder value through the creation of a newly formed, publicly traded, real estate trust.
TheStreet Ratings team rates PINNACLE ENTERTAINMENT INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PINNACLE ENTERTAINMENT INC (PNK) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: PNK Ratings Report
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