Is Penn National Gaming's Stock Plunge a Buying Opportunity?

Penn National Gaming's (NASDAQ: PENN) share price struck out badly following the Nov. 4 release of its third-quarter (Q3) 2021 results. After missing Wall Street consensus earnings estimates, the company's shares crashed 21% by market close. Though they rose slightly after hours, the drop raises questions about Penn's situation. Does this reveal significant problems, or did a mix of investor skittishness and a perfect storm of circumstances cause the slump? Here's a look at why a cautiously bullish outlook might be justified.

The casino, racetrack, and online sports betting operator reported revenue increased 33.8% year over year, and 11.6% from Q3 2019, to $1.51 billion. This revenue figure was in line with analyst expectations. However, adjusted earnings per share (EPS) fell year over year, dropping approximately 44% from Q3 2020's $0.93 per share to $0.52. While two-year stack EPS rose 36.8% from Q3 2019's $0.38, the results delivered a 41.6% negative surprise below the average expectations of major analysts.

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Source Fool.com