Why Penn Entertainment Stock Plummeted by 20% This Week
Gaming facilities and technology company Penn Entertainment (NASDAQ: PENN) had a forgettable week on the stock exchange. According to data compiled by S&P Global Market Intelligence, the company's shares tumbled by more than 20% in value over the period. The main reason was abundantly clear.
The No. 1 culprit was Penn Entertainment's fourth-quarter earnings, which were published before market open on Thursday. These revealed that the company's revenue fell by 12% year over year to just under $1.4 billion. More uncomfortably, it flipped to a bottom-line loss of almost $359 million compared to a profit of just under $21 million in the year-ago period.
On a non-GAAP (adjusted) basis, that net loss amounted to $1.75 per share, far steeper than the $0.50 average estimate from analysts tracking the stock. Penn Entertainment also missed on revenue, as those prognosticators were collectively expecting it to earn $1.55 billion.
Source Fool.com
