Penn National 1Q sales up but expenses hurt profit

For the three months ended March 31, Penn National Gaming earned us$ 65.3 million, or 63 cents per share. That compares with us$ 78.6 million, or 74 cents per share, in the same period last year. Stripping out development costs and other one-time items, per-share earnings fell to 69 cents from 73 cents. Analysts surveyed by FactSet predicted earnings of 65 cents per share. 

Revenue grew 8 %, to us$ 798.2 million from us$ 736.1 million. Wall Street was looking for higher revenue of us$ 805.3 million. And operating expenses grew more than sales, rising 12 % to us$ 664.9 million. 

Gaming revenue grew 9 % to us$ 717.9 million. Sales of food, drinks and other items grew 8 % to us$ 121.9 million. 

Penn National Gaming now anticipates full-year earnings of us$ 2.56 per share on revenue of about us$ 3.14 billion. Its prior guidance was for earnings of us$ 2.47 per share on revenue of about us$ 3.15 billion. Analysts foresee earnings of us$ 2.51 per share on revenue of us$ 3.18 billion. 

The Wyomissing, Pennsylvania company expects second-quarter earnings of 68 cents per share on revenue of us$ 793.2 million. Wall Street predicts earnings of 65 cents per share on revenue of us$ 804.9 million. Penn National Gaming runs 29 gaming and racing properties in the US.