DraftKings Inc. (NASDAQ:DKNG) and
Penn National Gaming, Inc. (NASDAQ:PENN) shares are trading lower as gambling stocks fall for the session amid weakness in Penn National Gaming. Penn shares dipped despite better-than-expected earnings results.DraftKings reports its first-quarter earnings on Friday.
DraftKings Inc is a digital sports entertainment and gaming company. The company provides users with daily fantasy sports (DFS), sports betting, and iGaming opportunities.
DraftKing s stock was trading 10.5% lower at $50.35 at the time of publication. The stock has a 52-week high of $74.38 and a 52-week low of $23.04.
Penn National Gaming Inc is the operator of gaming and racing properties and video gaming terminal ( VGT ) operations in the U.S.
Share:
Penn National Gaming reported first-quarter earnings Thursday morning, sending the stock lower.
The keys for investors could be the discussion on growing momentum at land-based casinos and the continued rollout of Barstool Sportsbook.
What Happened:
Penn National Gaming s (NASDAQ: PENN) first-quarter revenue was down 6% year-over-year. Revenue of $1.27 billion in the first quarter beat Street estimates of $1.14 billion.
The company reported earnings per share of 55 cents, coming in ahead of Street estimates of 29 cents per share.
Penn National Gaming highlighted strong demand at land-based casinos and cost structure improvements. The company posted net income growth of 7% year-over-year in the first quarter and record adjusted EBITDAR margins of 35%.
Pennsylvania casinos, for the first time since the onset of the COVID-19 pandemic in March of 2020, will soon be free of reduced operating capacity restrictions.
Pennsylvania Governor Tom Wolf (D) is seen in an undated file photo. The governor is allowing state casinos to operate without reduced capacity restrictions beginning on Memorial Day. (Image:
Times Leader)
On the same day that New Jersey announced that Atlantic City casinos can return to 100 percent capacity effective May 19, Pennsylvania Gov. Tom Wolf (D) said state casinos can do the same, but beginning on Memorial Day.
Pennsylvania is home to 14 commercial casinos. Four more are on the way, though those facilities are so-called “satellite casinos” that can house up to 750 slot machines and 30 table games.
Penn National Gaming: Q1 Earnings Snapshot
May 6, 2021
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WYOMISSING, Pa. (AP) Penn National Gaming Inc. (PENN) on Thursday reported first-quarter net income of $91 million, after reporting a loss in the same period a year earlier.
On a per-share basis, the Wyomissing, Pennsylvania-based company said it had profit of 55 cents.
The results surpassed Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 30 cents per share.
The casino operator posted revenue of $1.27 billion in the period, also surpassing Street forecasts. Six analysts surveyed by Zacks expected $1.14 billion.
Penn National Gaming shares have risen nearly 6% since the beginning of the year. The stock has increased fivefold in the last 12 months.