Orrstown beats estimates by 15 cents; Penn National up in Q2
Two companies with Central Pennsylvania home bases announced their second-quarter earnings Wednesday and today.
Orrstown Financial Services Inc.
Orrstown Financial Services Inc. of Shippensburg beat analyst estimates by a large margin for the third quarter in a row with a net income for the second quarter of $2.9 million, or 35 cents per diluted share.
That was a big beat on the average analyst estimate of 20 cents, according to Yahoo Finance. In the two previous quarters, Orrstown beat estimates by 16 cents and 8 cents, respectively.
The net income, however, was down from $3.4 million — 42 cents per diluted share — in the second quarter of 2013. Company officials explained the 2013 second quarter was aided by a $1.4 million negative provision for loan losses that didn’t exist in the most recent quarter.
“We are experiencing stronger loan demand throughout the region and are particularly pleased with the contributions from the team based in our newest facility in Lancaster County,” Orrstown President and CEO Thomas R. Quinn Jr. said.
Orrstown has 22 banking facilities in Cumberland, Franklin, Lancaster and Perry counties in Pennsylvania and in Washington County in Maryland. It has nearly $1.2 billion in assets and trades on the NASDAQ under the ticker symbol ORRF.
Penn National Gaming Inc.
Penn National Gaming Inc., the Wyomissing-based company that operates Hollywood Casino at Penn National Race Course, reported it had missed its earnings guidance for the second quarter in net revenue, but still improved on 2013’s second quarter.
The company reported a $12.2 million loss in the second quarter of 2013, but had net income of $2.8 million, or 3 cents per diluted share, in 2014’s second quarter.
While an improvement, the company’s guidance was for $5.5 million in net revenue and 6 cents per diluted share. The average analyst estimate, according to Yahoo Finance, sat at 7 cents per diluted share.
However, after tax considerations, Penn National reported earnings of 5 cents per diluted share versus guidance of 4 cents.
The company plans to open a number of casinos in the coming months and years, according to its earnings report:
• Hollywood Gaming at Dayton (Ohio) Raceway: Aug. 28, with harness racing starting Oct. 3.
• Zia Park Casino (New Mexico): Aug. 28
• Hollywood Gaming at Mahoning Valley (Ohio) Race Course: Undetermined date in September
• Plainridge Park Casino (Massachusetts): June 2015
• Hollywood Casino Jamul-San Diego (California): Mid-2016
• Live! Hotel and Casino New York: New project, with the state’s gaming commission likely deciding on license awards later this year.
Penn National trades on the NASDAQ under the ticker symbol PENN.