I think the market is sophisticated enough to understand that .02 from Pocono was backed out of this earnings report. I think most were expecting earnings to be .60 or above, not ".58" (adding Pocono back in). I know I was.
Penn earned .60 last quarter. Compared to last quarter, revenues for CT were up 4.8%, and for Aurora were up 1.7%. Together these two properties contribute roughly 2/3 of Penn's profits. If everything else stayed the same, earnings should have been somewhat above .60. Granted, the hurricane depressed business somewhat at 3 of Penn's smaller properties, but several cents worth?
When I get a chance, I'll compare Q3 to Q2 in more detail to try to see why we weren't at .60 or above.
Bay St Louis EBITDA, for example, was down 30% vs. Q2. I don't believe closing 3 days (weekdays, at that) for Hurricane Ivan accounts for a 30% drop.
DeSanctis tried to explain the poor results during the conference call, making reference to a poor August: marketing into a weak calendar; "did the volumes but revenues werent there" (whatever that means), etc.; none of it made much sense. Then, hurricane in September "didn't help."
My point is, earnings were a little light, good but not great. Southern casinos seem to be the culprit, but there's more to the situation there than one 3 day hurricane.