Penn National 1Q sales up but expenses hurt profit

WYOMISSING, Pa. (AP) -- Penn National Gaming said Thursday that its net income fell 17 percent in the first quarter as expenses rose. But it pulled in more money from people gambling and buying food and drinks, lifting revenue 8 percent.

The casino operator raised its full-year per-share earnings forecast but trimmed its revenue outlook.

For the three months ended March 31, Penn National Gaming earned $65.3 million, or 63 cents per share. That compares with $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 percent, to $798.2 million from $736.1 million. Wall Street was looking for higher revenue of $805.3 million.

And operating expenses grew more than sales, rising 12 percent to $664.9 million.

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

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

Analysts foresee earnings of $2.51 per share on revenue of $3.18 billion.

The Wyomissing, Pa. company expects second-quarter earnings of 68 cents per share on revenue of $793.2 million. Wall Street predicts earnings of 65 cents per share on revenue of $804.9 million.

Penn National Gaming runs 29 gaming and racing properties in the U.S.