Post coronavirus-induced shutdowns in mid-March, Penn National Gaming, Inc. PENN resumed operations at Plainridge Park Casino in Massachusetts on Jul 8 and Hollywood Casino Bangor in Maine on Jul 10.
With these re-openings, the company stated that it has resumed operations at 37 (out of 41) gaming and racing properties. Markedly, this represents approximately 90% of the company’s regional gaming portfolio in 17 states (out of 19 operational states in total).
Upon resuming businesses, the company implemented a multi-layered set of protocols and procedures designed in compliance with state regulators and health officials to mitigate the spread of coronavirus. Also, the properties were reopened on approval basis only.
President and CEO of Penn National, Jay Snowden stated, “Our property and Corporate management teams have worked diligently with our regulators and local and state public health officials to create a safe environment in our properties.”
Nonetheless, with additional states gearing up to restart gaming operations, the company looks forward to reopen its remaining properties, subject to final approval from state regulators.
Resort Reopening & Improved Traffic to Drive Growth
Although coronavirus has triggered a catastrophe in terms of lives lost and financial impact, the company appears resilient enough to navigate through these uncertain times.
Following closure of properties in mid-March due to the COVID-19 outbreak, Penn National looks to recover business with improved traffic and more resort re-openings. To support the re-openings, the company is following regulatory guidelines to ensure safety and well-being of its guests and employees. It also ensures limited capacity seating across the casino floor.
Notably, management intends to ramp up business operations with more resort re-openings in times ahead. Reopening of its properties can drive the top line in the coming quarters.
So far this year, shares of Penn National have risen 15.2% against the industry’s 27.8% decline.
Zacks Rank & Key Picks
Penn National currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector include Pool Corporation POOL, Capcom Co., Ltd. CCOEY and Zynga Inc. ZNGA. Pool Corporation sports a Zacks Rank #1, while Capcom and Zynga carry a Zacks Rank #2 (Buy).
Pool Corporation has a trailing four-quarter positive earnings surprise of 9.8%, on average. The company’s earnings beat the Zacks Consensus Estimate in the last four quarters.
Earnings in 2021 for Capcom are expected to surge 14.5%.
Zynga has a three-five-year earnings per share growth rate of 12.5%.
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