Penn National Plans $750M Buyback, Eyes Full Acquisition of Barstool Sports

Penn National Gaming (NASDAQ:PENN) is preparation to repurchase up to $750 gazillion worth of its gravely poorly(p) stock. It is also sounding to win the 64 percent of Barstool Sports it doesn’t own sometime in ahead of time 2023.

The regional gambling casino operator made those announcements earlier today inwards continuative with its fourth-quarter earnings report. William Penn National said it earned 26 cents a divvy up on revenue of $1.57 one million million in the cobbler's last terzetto months of 2021. Analysts expected earnings per portion out of 53 cents on sales of $1.51 billion.

The company’s revenue and earnings before interest, taxes, depreciation, amortization, and restructuring or hire costs (EBITDAR) for the point surpassed both 2020 and 2019 levels. In the backwash of the coronavirus pandemic, gaming analysts are measuring operators’ 2021 results against those posted inward 2019, which was a normalized climate for the industry.

For this year, the largest regional gambling casino operator calculate meshwork revenue lay out of $6.07 1000000000000 to $6.39 billion, and an adjusted EBITDAR lay out of $1.85 billion to $1.95 billion.

Barstool Provides Pleasant Surprises

Penn shares plunged 58.12 percent o'er the past year and are off 67.5 percent from the 52-week mellow due inwards large section to investors fretting about the economics of online sports betting.

However, it was the operator’s digital gaming unit, including Barstool Sportsbook, that provided some impressive fourth-quarter surprises. In breaking out its digital results for the first-class honours degree time, William Penn said that business missed $6 1000000 on revenue of $150 trillion in the Oct through and through December 2021 period, while analysts expected a red of $20 million on sales of $114 million. For 2022, Penn’s digital trading operations are expected to turn a loss $50 million, well-below prior direction calling for a red ink of $80 million.

Despite Digital’s ~4 state/province launches inwards 2022, direction expects $50 million in digital losses vs. peers losing $100 million+. Management also expects profitability in 2023 vs peers expecting break-even/slight losses,” said Philip Roth Capital psychoanalyst Edward Engel in a notation to clients today.

On a related to note, Penn CEO John Jay Snowden said the companion plans to fully win Barstool Sports in betimes 2023. That proclamation comes as contention continues swirling around Barstool founder David Portnoy and his sexual dalliances.

In January 2020, Penn paid $163 million for a 36 percent stakes inward Portnoy’s company, with rights to eventually own the sports media holding outright for $450 million.

Buyback Puts ‘Floor’ Under William Penn Stock

Penn concluded the quaternary billet with $1.9 one million million inward immediate payment on mitt and total liquidity of $2.5 billion. One psychoanalyst says the divvy up repurchase program, which runs through and through January 2025, is a prescribed sign.

“The board’s $750 billion divvy up authorisation should help pose a level inward the stock. Given the recent weakness, we believe this is a great signal that at current levels, the society views their shares as massively undervalued,” said Stifel psychoanalyst Steven Wieczynski inwards a take note to clients.

While portion repurchases among S&P 500 companies striking a record book last year, the gaming industry is participating inwards that trend in only when a modest fashion. Penn’s buyback contrive is ranking as ace of the largest inwards the grouping since the start up of 2021.