Penn Nat'l Gaming up 20% after 4Q loss posted

WYOMISSING, Pa. - Penn National Gaming Inc. posted a fourth-quarter loss of $378.6 million today, primarily weighed down by a large impairment charge and lobbying costs.

Company shares were up 19.53 percent ($3.41) early this afternoon to $20.87 in Nasdaq trading.

The casino operator reported a loss of $4.77 per share for the quarter. A year earlier Penn posted a profit of $32.2 million, or 36 cents per share.

Analysts polled by Thomson Reuters expected earnings of 25 cents per share. Analysts' estimates typically exclude onetime items.

Quarterly results included a $392.6 million impairment charge and $24.9 million in lobbying costs.

The company said the impairment charge was related to its declining stock price, an overall drop in stock prices in the sector, and operating performance of properties in the current economic climate.

Casino operators have struggled as consumers have tightened their discretionary spending due to the prolonged housing slowdown, rising food costs, diminishing credit and unemployment concerns.

Revenue dipped 3 percent to $571.1 million from $585.8 million for the period ended Dec. 31.

The results narrowly missed Wall Street's estimate of $571.4 million.

Penn reported a full-year loss of $153.3 million, or $1.81 per share, compared with profit of $160.1 million, or $1.81 per share, in the previous year.

Annual revenue fell 1 percent to $2.42 billion from $2.44 billion.

The company also forecast first-quarter earnings below analysts' estimates and provided a full-year outlook.

Penn National Gaming currently runs 19 properties in Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey (Freehold Raceway), New Mexico, Ohio, Pennsylvania (Hollywood Casino at Penn National Race Course, near Harrisburg), West Virginia, and Canada.