Penn Gaming Stock Is Ready To Rebound
MarketBeat.com | Feb 16, 2022 04:14AM ET
Domestic casino operator Penn National Gaming (NASDAQ:PENN) made a spectacular rise from pandemic lows of $3.75 in March 2020 soaring to a high of $142 a year later only to collapsed to a low of $37.76 in January 2022. The Company continues to grow its Barstool Sportsbook brand and additional physical casino locations which integrate the pandemic accommodative “3Cs” of being cashless, cardless, and contact less. Penn Gaming Studios plans to leverage the omni-channel synergy effects drive growth in its development of Barstool Blackjack and Barstool Slots. As more states legalize online sportsbooks and iGaming, Penn Gaming is prepared to launch and bolster its footprint both digitally and physically. While earnings only came in a 50% of expectations, the Company is laying the groundwork for the future. Prudent investors seeking a domestic play on casino gaming and sportsbetting can look for opportunistic pullbacks in shares of Penn Gaming.h2 Q4 FY 2021 Earnings Release /h2
On Feb. 3, 2022, Penn Gaming released its fiscal year Q4 2021 earnings for the quarter ending September 2021. The Company reported a GAPP profit of $0.26 per share versus consensus analyst estimates for a profit of $0.52 per share, missing by (-$0.26) per share. Revenues grew 53.1% year-over-year (YoY) to $1.57 billion beating consensus estimates for $1.51 billion. Adjusted EBITDAR rose 31.5% YoY to $480.5 million. The Company authorized a new $750 million shares buyback program. Penn Gaming CEO Jay Snowden commented:
h2 Flat Guidance/h2“I am pleased to report a strong finish to another transformative year for Penn National. Our fourth quarter revenues of $1.6 billion and Adjusted EBITDAR of $480.5 million exceeded both 2020 and 2019 levels as our best-in-class operating teams continue to deliver impressive results despite the ongoing pandemic. In addition, we accomplished several strategic objectives this quarter that have laid the foundation for future growth, including the completion of our acquisition of Score Media and Gaming Inc., the continued expansion of Penn Interactive operations, the opening of our fourth casino in Pennsylvania and the roll-out of new technology at many of our casinos.”
Penn Gaming issued flat revenue guidance for full-year 2022 to come in between $6.07 billion to $6.39 billion versus $6.22 billion consensus analyst estimates. The Company expects full-year adjusted EBITAR of $1.85 billion to $1.95 billion.
h2 CEO Comments/h2CEO Jay Snowden noted two new states launched sports betting, Iowa, and West Virginia. The launch of online sports betting in Louisiana brings a total of 12 states that Penn operates sports gaming in and iCasino gaming in four states. The Company expects new launches in Ohio, Ontario, and Maryland in 2022. The acquisition of the Score galvanizes Penn Gaming’s leadership in digital content, gaming, and technology in North America. The Company plans to acquire the remaining stake in Barstool Sports, Inc. in 2023. Penn Gaming opened its 44th U.S. location with a Hollywood Casino in Morgantown, Pennsylvania, marking its fourth property in that state. The latest casino incorporates cardless, cashless, and contactless ‘mywallet’ experience which exists in eight properties in Pennsylvania and Ohio. These serve as a template for future casinos moving forward. The Barstool Sportsbook saw “sizeable” growth with increased traction during football season to become one of the leading operators in the New Jersey market. Barstool social media reach exceeds 144 million, a 25% YoY increase. Barstool opened its first physical sports bar location in Chicago with additional locations expected including Philadelphia to bolster its brand and fuel its omnichannel strategy.
Get The News You Want
Using buy triggers above the $51.21. The daily rifle chart uptrend has a rising 5-period MA at $48.91 followed by the 15-period MA at $45.93 and 50-period MA at $47.40. The daily stochastic formed a pretzel mini pup through the 80-band. The daily upper Bollinger Bands (BBs) sit at $52.24. Prudent investors can watch for opportunistic pullback levels at the $47.62 fib, $45.50, $43.36 fib, $40.70 fib, $37.76 fib, $35.64 fib, and the $32 fib level. Upside trajectories range from the $58.05 fib level up towards the $76.14 fib level.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.