PENN BEATS AND RAISES

PENN beat us for Q2 and we were well above the Street. Outstanding quarter with revenues and EBITDA exceeding expectations.  PENN beat Q2 consensus by almost $10MM in EBITDA and us by $6MM.

Guidance for the second half of the year was also raised.  If we excluded the $20 million gain and pre-opening expense from guidance, it appears that PENN raised EBITDA guidance about $17 million from prior.  New 2011 EBITDA guidance was $723.5 million or $715.1 million after the above non-operating adjustments.  Consensus was $694.9 million or $704.3 million after adjusting for the Q2 beat.  Thus, PENN provided 2H guidance $10.8 million above the Street ($715.1-704.3), of which $2m falls in Q3.

Here are the property results:

PENN BEATS AND RAISES - PENN3