LOS ANGELES, Feb 4 (Reuters) - Penn National Gaming Inc
posted weaker-than-expected quarterly results as consumer spending softened and gave a 2010 forecast well below Wall Street's estimates, sending its shares down more than 9 percent.
'Penn's fourth-quarter results and guidance suggest that high unemployment levels and general economic weakness are holding back a recovery in the regional gaming markets,' Goldman Sachs analyst Steve Kent said in a research note.
He said Penn reported quarterly operating earnings per share of 11 cents, which fell short the 18 cents per share forecast by Wall Street analysts.
On a net basis, the company reported a loss of $355.4 million, or $4.54 per share, compared with a net loss of $378.6 million, or $4.77 in the same 2008 period.
Revenue fell to $555.8 million from $571.1 million. The analysts' average estimate was $573.6 million, according to Thomson Reuters I/B/E/S.
Looking ahead, Penn said it expects 2010 revenue of $2.43 billion and adjusted earnings per share of $1.00. Analysts had forecast revenue of $2.52 billion and earnings per share of $1.39.
Penn, which operates racetracks and casinos in U.S. cities other than Atlantic City and Las Vegas, last month bowed out of bidding on the bankrupt, unfinished Fontainebleau Las Vegas casino resort.
A Florida court subsequently approved billionaire investor Carl Icahn's offer for the 3,800-room property.
Penn Chief Executive Peter Carlino, speaking on a conference call with analysts and investors, said the company is still engaged in talks over acquiring a possible presence in Las Vegas.
Shares of Penn were down $2.47 at $24.74 in midday trading on Nasdaq.
(Reporting by Deena Beasley and Deepa Seetharaman, editing by Dave Zimmerman) Keywords: PENNNATIONAL/ (deepa.seetharaman@thomsonreuters.com; +1 646 223-6125; Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
posted weaker-than-expected quarterly results as consumer spending softened and gave a 2010 forecast well below Wall Street's estimates, sending its shares down more than 9 percent.
'Penn's fourth-quarter results and guidance suggest that high unemployment levels and general economic weakness are holding back a recovery in the regional gaming markets,' Goldman Sachs analyst Steve Kent said in a research note.
He said Penn reported quarterly operating earnings per share of 11 cents, which fell short the 18 cents per share forecast by Wall Street analysts.
On a net basis, the company reported a loss of $355.4 million, or $4.54 per share, compared with a net loss of $378.6 million, or $4.77 in the same 2008 period.
Revenue fell to $555.8 million from $571.1 million. The analysts' average estimate was $573.6 million, according to Thomson Reuters I/B/E/S.
Looking ahead, Penn said it expects 2010 revenue of $2.43 billion and adjusted earnings per share of $1.00. Analysts had forecast revenue of $2.52 billion and earnings per share of $1.39.
Penn, which operates racetracks and casinos in U.S. cities other than Atlantic City and Las Vegas, last month bowed out of bidding on the bankrupt, unfinished Fontainebleau Las Vegas casino resort.
A Florida court subsequently approved billionaire investor Carl Icahn's offer for the 3,800-room property.
Penn Chief Executive Peter Carlino, speaking on a conference call with analysts and investors, said the company is still engaged in talks over acquiring a possible presence in Las Vegas.
Shares of Penn were down $2.47 at $24.74 in midday trading on Nasdaq.
(Reporting by Deena Beasley and Deepa Seetharaman, editing by Dave Zimmerman) Keywords: PENNNATIONAL/ (deepa.seetharaman@thomsonreuters.com; +1 646 223-6125; Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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