Shares of Penn National Gaming Inc. PENN,
slumped 1.7% in premarket trading Thursday, after the online gaming and sports betting company and Barstool Sports partner reported second-quarter profit that missed expectations but revenue that topped, as rising expenses led to a drop in margins. Net income dropped to $26.1 million, or 15 cents a share, from $198.7 million, or $1.17 a share, in the year-ago period. The FactSet consensus was for earnings per share of 50 cents. Revenue rose 5.2% to $16.3 billion, above the FactSet consensus of $1.60 billion, as gaming revenue increased 1.5% to $1.33 billion and food, beverage, hotel and other revenue jumped 25.4% to $301.3 million. Total operating expenses increased more than revenue, rising 13.4% to $1.32 billion, as operating income as a percent of revenue contracted to 18.6% from 24.4%. The company repeated its 2022 revenue guidance of $6.15 billion to $6.55 billion. The stock has shed 5.5% over the past three months through Wednesday, while the S&P 500 SPX,
has lost 3.4%.
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