Las Vegas-based Pinnacle Entertainment, operators of a rural casino on the Nevada-Idaho border and a portfolio of Southern and Midwestern resorts and racetracks, on Tuesday reported earnings that surpassed analysts’ expectations.
The company, whose stock price has more than doubled in the past 12 months and opened at $26.89 a share on Tuesday, reported earnings of $14.1 million, 23 cents a share, on revenue of $647.4 million for the quarter that ended Sept. 30.
For the same quarter a year earlier, Pinnacle reported a loss of $486,000, 1 cent a share, on revenue of $595.2 million.
A survey of eight Wall Street analysts projected earnings of 18 cents a share, but 10 analysts surveyed also expected revenue of $656.4 million.
The company’s West division, which includes the Ameristar Black Hawk in Colorado and Cactus Pete’s Resort in Northern Nevada, saw a revenue increase of $2.4 million, or 3.8 percent year over year.
But the biggest growth occurred at the company’s regional properties in Missouri, Ohio and Pennsylvania. The company reported a 17.5 percent $58.2 million increase from its Midwest division, which includes its racino at The Meadows in Pennsylvania, which has been under Pinnacle ownership for just over a year.
The company endured the negative financial effect in its South division as a result of Hurricane Harvey. Company executives estimated revenue was down $6.4 million with cash flow off $4.2 million at the company’s L’Auberge Lake Charles property in Louisiana, which serves a southeast Texas feeder market affected by the hurricane.
Shares closed down 36 cents, or 1.35 percent, at $26.27.
Pinnacle by the numbers
Third-quarter revenue and earnings for Las Vegas-based Pinnacle Entertainment Inc. (New York Stock Exchange: PNK).
3Q 2017 3Q 2016 Change
Revenue $647.4 million $595.2 million +8.7%
Earnings/Loss $14.1 million ($486,000) —
Earnings/Loss per share 23 cents (1 cent) —