Penn National Stock Drops on Earnings Miss, Article on Barstool’s Dave Portnoy
Brett Carlsen/Getty Images. Pictured: Barstool flag
Penn National Gaming stock saw a significant drop on Thursday, amplified by allegations against Barstool founder Dave Portnoy.
Penn missed its Q3 earnings target by 41.77%, it announced early Thursday. Penn did report $1.5 billion in revenue for Q3 to beat its revenue target by 0.43%. The stock was down about 4.7% in the first hour of trading.
Then around 10 a.m. ET, Business Insider revealed details of sexual experiences from multiple women that turned violent and traumatic with Barstool founder Dave Portnoy. Portnoy denied any wrongdoing in a Twitter post.
Penn's stock price hit a yearly low of $56.49 on Thursday before rebounding a bit to $59.06 at the time of publish, about a 20% drop for the day.
Penn's price is down 26.98% in 2021 but is about flat since last November, when it traded in the high $50's.
Penn hopes the acquisition of theScore will add to its portfolio and expand its reach, especially into Canada. A Barstool sportsbook also launched in Iowa, giving the company 10 states where it's operating.
It does not appear however that Penn will be one of the nine online sportsbooks to launch in New York next year. CEO Jay Snowden said no operators will make money in New York because of the 51% tax rate on profits, hinting that yesterday's reports are accurate and Barstool will not be one of the initial books in the Empire State.
While revenue grew for Penn, so did expenses, which outpaced growth. The record revenue did not result in record profits. Net income was down from $141.9 million a year ago to $86.1 million for the latest report.
Snowden explained the drop due partially to Hurricane Ida and Delta variants of COVID-19 in the south region of the United States slowing business.
Other gaming stocks had rough days, too. DraftKings, FanDuel parent Flutter and MGM were all down at least 3%.
At time of publish, Penn National did not respond to The Action Network's request for comment. This story will be updated if a response is received.
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