Penn National Gaming: Peers Look Better
Penn National Gaming: Still Bullish, But...
Mon, Jul. 11, 10:49 AM
- Wells Fargo issues a detailed report on the gaming sector to clients.
- The headline item is the firm's forecast for a 8% to 10% decline in Macau revenue for July (consensus -5.8%). Aside from the soft read on Macau, Wells does point to some improved trends at regional casinos in the U.S. Iowa, Illinois, Ohio, and Maryland all saw revenue growth in June. Tracking from Wells indicates rates for MGM Resorts properties are up 3% Y/Y in July and 9% for August
- On a year-to-date view, gaming stocks are +3% to trail the +4% performance of the S&P 500.
- The gaming stocks currently rated Outperform by Wells are listed below.
- Gaming and Leisure Properties (NASDAQ:GLPI): "We remain positive on GLPI given its attractive relative valuation, and stable dividend."
- Red Rock Resorts (Pending:RRR): "RRR has the best assets in a growing market with high barriers to entry, in our view."
- Churchill Downs (NASDAQ:CHDN): "CHDN has iconic, high ROIC, and fast growing assets, with significant earnings and dividend growth potential, in our view."
- MGM Resorts (NYSE:MGM): "We see positive risk-reward based on a strong Las Vegas outlook."
- Penn National Gaming (NASDAQ:PENN): "We believe PENN is undervalued given significant FCF and growth opportunities."
- Related ETF: BJK.
Thu, Jun. 9, 2:45 PM
- Casino operators continue to find new ways to generate sales with gaming revenue under some pressure. The last round of quarterly reports from the sector indicated strong RevPAR numbers which means the hotel and restaurant side of the business is working well.
- A scan of Nevada gaming data over a 12-month period (5/1/15-4/30/16) might reveal some broader trends across the U.S. as the millennial generation factors into the equation.
- Nevada games and table win revenue -4.03% to $4.096B. Win percentage 13.14% vs. 12.60% for the preceding year. Baccarat and roulette fell off during the one-year period, while craps and new games contributed positively.
- Slot machine win revenue +2.8% to $7.013B. Win percentage 6.56% vs. 6.45% for the preceding year. Revenue from penny slots was up 7% Y/Y.
- Sports betting revenue growth: Football -2%; Baseball +79%; Basketball +17%; Parlays -34%.
- Sports betting win % comparisons: Football 5.4% vs. 5.5% prior; Baseball 4.3% vs. 3.1% prior; Basketball 5.2% vs. 5.1% prior; Parlays 26%. vs. 39% prior.
- Source: Nevada Gaming Control Board reports
- Related stocks: LVS, MGM, WYNN, FLL, CZR, BYD, ISLE, DRII, PNK, PENN, NYNY, OTCQB:TPCA, ERI.
- Related ETF: BJK.
Fri, May 27, 10:06 AM
- The talk at the East Coast Gaming Congress and iGaming Institute conference was on the impact of proposed casinos in northern New Jersey near New York City.
- Voters in New Jersey will decide the issue in November, but it's what happens in New York if the measures passes that is creating the buzz. Some industry insiders think the Big Apple will consider allowing gambling inside Manhattan due to the threat just across the Hudson.
- "New York City will retaliate violently," summed up Resorts Casino Hotel president Mark Giannantonio.
- The prognosis on Atlantic City is that the city will lose three to five of its existing casinos if gambling opens up to the north.
- Related stocks: BYD, CZR, MGM, NYNY, PENN.
Thu, Apr. 28, 7:12 AM
Tue, Apr. 5, 10:41 AM
- MGM Resorts (MGM -1.2%) debuts its new 20K-seat arena in Las Vegas tomorrow with a performance by local band The Killers.
- Guns N' Roses, Billy Joel, Nicki Minaj, and Janet Jackson are also scheduled for concerts at the new venue over the next six weeks.
- MGM, which already has the Pac-12 basketball tournament lined up for next year at the arena, sees attracting a large number of high-profile sports events. The long-term plan is to lure a NHL or NBA team (or both) to Las Vegas in a development that could be a benefit to other Strip operators such as Wynn Resorts (NASDAQ:WYNN), Caesars Entertainment (NASDAQ:CZR), Penn National Gaming (NASDAQ:PENN) via The Tropicana, and Las Vegas Sands (NYSE:LVS) via The Venetian. On that note, professional sports commissioners have been less standoffish to Las Vegas expansion with regional gambling now found in nearly all major cities.
- Naming rights to the modern arena went to T-Mobile (NASDAQ:TMUS).
Tue, Mar. 29, 12:03 PM
- Penn National Gaming (PENN +5.5%) is on the move after JPMorgan boosts its price target to $22.
- The casino operator has been slowly recovering since its share price bottomed out at $12.51 in mid-February.
- Looking ahead, Penn management thinks the company can take advantage of some improving trends in Las Vegas with its enhanced Tropicana property.
Tue, Mar. 15, 3:27 PM
Fri, Feb. 26, 12:26 PM
- Casino stocks are churning higher today as the mix of macroeconomic news and earnings reads continues to lean to the favorable side.
- Earlier today, casino industry supplier Scientific Games reported earnings which included a solid increase in gaming machine shipments by the company to U.S. and Canadian customers (+12% pro forma w/Bally's acquisition factored in).
- Gainers include Caesars Entertainment (CZR +11.1%), Boyd Gaming (BYD +7.5%), Isle of Capri Casinos (ISLE +3.2%), MGM Resorts (MGM +3.3%), Wynn Resorts (WYNN +2.9%), and Penn National Gaming (PENN +1.8%).
- The Market Vectors Gaming ETF (NYSEARCA:BJK) is up 1.1%, compared to a flat S&P 500 Index.
- Related: Casino Stocks Are Coming Up Aces (Feb. 23 2016)
- Related: March Madness In Las Vegas: More Proof That Gaming Has Become An Event Driven Industry (Feb. 26 2016)
Thu, Feb. 25, 3:58 PM
- The Trump Organization is considering building a casino in Las Vegas adjacent to the company's luxury hotel and condo tower on the north end of the Strip, according to a long-time business partner of Donald Trump.
- Donald Trump has a long history in Atlantic City, but has never owned a casino in Las Vegas. His son Eric Trump is running the hotel end of the business, while the GOP nomination drama plays out.
- On a broader look at development in Las Vegas, old projects on the north end of the Las Vegas Strip have been re-energized with revenue growth in the region improving. That development could be positive for Wynn Resorts and its Wynn Las Vegas and Encore properties.
- Related stocks: LVS, MGM, WYNN, FLL, CZR, BYD, PENN.
Sat, Feb. 20, 11:05 AM
- The U.S. casino industry is looking at ways to attract more millennials as baby boomer traffic begins to soften. The addition of fitness centers, spas, and a stronger sports book/sports bar presence with more betting options are seen as ways to increase visits by the younger demographic.
- Companies are also edging closer to adopting skills-based gambling machines as a way to lure in millennials who aren't enchanted with traditional slot machines. Nevada and New Jersey already have regulations in place, while at least six other states are looking seriously at the issue.
- The next-gen slot machines could incorporate well-known games such as Angry Birds or Guitar Hero, as well as retro versions of Pac Man and Space Invaders.
- What to watch: One category that is a known winner for attracting huge millennial interest is daily sports fantasy games. Whether it plays out in Washington D.C. or through the courts, casinos could carve out a large piece of that pie in the future.
- Related stocks: LVS, MGM, WYNN, FLL, CZR, BYD, ISLE, DRII, PNK, PENN, NYNY, OTCQB:TPCA, ERI,
- Related ETF: BJK.
Fri, Feb. 12, 10:54 AM
- Consumer spending in the U.S. showed some strength in January to defy some of the signals being sent by equity markets.
- "The markets may have decided that the U.S. is headed for recession, but obviously no one told U.S. consumers," said econimist Paul Ashworth.
- Though data shows consumers have pulled back on some big-ticket categories to save more, there's some pockets of retail that could surprise this year - especially if gas prices move closer to $1/gallon.
- Companies that consumers interface with daily or weekly are more likely to benefit than those in the luxury discretionary space where falling 401K or profit-sharing plan values weigh a bit heavy on demand (home improvement, jewelry, high-end auto, etc), note analysts.
- Potentially sitting in that sweet space: Ross Stores (NASDAQ:ROST), TJX Companies (NYSE:TJX), Ulta Salon (NASDAQ:ULTA), Columbia Sportswear (NASDAQ:COLM), Skechers (NYSE:SKX), Nike (NYSE:NKE), Foot Locker (NYSE:FL), Dollar General (NYSE:DG), Target (NYSE:TGT), Party City (NYSE:PRTY), Churchill Downs (NASDAQ:CHDN), Isle of Capri (NASDAQ:ISLE), Penn National Gaming (NASDAQ:PENN), Boyd Gaming (NYSE:BYD), Casey's General Stores (NASDAQ:CASY), McDonald's (NYSE:MCD), Cracker Barrel (NASDAQ:CBRL)... add your own in the comments.
Thu, Feb. 4, 11:56 AM
- Penn National Gaming (PENN +4.6%) trades higher after reporting Q4 results.
- Adjusted guidance of $206.2M for the quarter topped last year's mark and company guidance.
- Revenue by segment: East/Midwest +11.3% Y/Y to $428.32M, West +41% to $88.86M, Southern Plains +6.6% to $211.81M.
- Previously: Penn National reports Q4 results (Feb. 04 2016)
Thu, Feb. 4, 7:12 AM
- Penn National (NASDAQ:PENN): Q4 Adjusted EBITDA of $206.2M.
- Revenue of $734M (+12.7% Y/Y)
Tue, Jan. 26, 1:38 PM
- The U.S. casino business could generate revenue up to $93B by 2020 as growth picks up, according to a forecast by Technavio.
- The upside could be higher for regional casinos which aren't battling to offset the loss of VIP baccarat revenue like Las Vegas operators, although Strip revenue is still seen besting 2015 totals.
- Forecasts for Macau have been cautious due to the carnage in Chinese equity markets, although analysts note the sector will run up against soft comparables for at least the first part of the year. New openings on the Cotai Strip are expected to bring in new international visitors.
- Related stocks: ISLE, PENN, PNK, BYD, GLPI, CHDN, MCRI, OTCQB:TPCA, CNTY, ERI, NYNY, DDE, UWN, FLL, CZR, CACQ, MGM, LVS, WYNN, MPEL, OTCPK:SJMHY, OTCPK:GXYEF.
Wed, Jan. 20, 10:40 AM
- Casino stocks are getting battered as the cases for revenue recoveries in Macau and Las Vegas start to crumble. Analysts note that the correlation between stock market turmoil and a drop in VIP casino traffic is hard to ignore.
- Major losses are being racked up by Wynn Resorts (WYNN -10.1%), Melco Crown (MPEL -9.7%), MGM Resorts (MGM -9.5%), Las Vegas Sands (LVS -8.7%), Caesars Entertainment (CZR -8.3%), Boyd Gaming (BYD -8.2%), Century Casinos (CNTY -7.6%), Pinnacle Entertainment (PNK -6.8%), and Penn National Gaming (PENN -6.1%).
- Related ETF: BJK.
Fri, Jan. 8, 10:40 AM
- Regional casino stocks are notable outperformers on the day as investors bet that a strong jobs report could help traffic. An upgrade on Boyd Gaming is also helping to tip sentiment.
- Gainers include Isle of Capri (NASDAQ:ISLE) +3.2%, Caesars Entertainment (NASDAQ:CZR) +4.1%, Penn National Gaming (NASDAQ:PENN) +3.0%, Churchill Downs (NASDAQ:CHDN) +1.2%, and Full House Resorts (NASDAQ:FLL) +1.4%.
- The Macau majors are also showing gains, although the rough start to the year in China has all of them in negative territory for the week. Las Vegas Sands (NYSE:LVS) is the leader on the day with a 2.7% rise, while Wynn Resorts (NASDAQ:WYNN) is level at $60.
- Related ETF: BJK.
Penn National Gaming, Inc. owns and operates casinos and racetracks. The company operates its business through three segments: Midwest, East/West and Southern plains. The Midwest segment consists of the following properties: Hollywood Casino Lawrenceburg, Hollywood Casino Aurora, Hollywood... More
Industry: Resorts & Casinos
Country: United States
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