Penn National Gaming (NASDAQ:PENN) is set to report its earnings on Feb 5. A very enviable financial position for the company has been much in the hype. And why would it not, given that every other stock is reeling under pressure to meet its finances and balance shareholder’s expectations too. The much hyped cash balance of $1.5 billion in cash on hand is due to a failed attempt to go private last year. The company has been mulling at some asset acquisition ever since. Penn National's management is committed to acquiring a Strip resort, potentially in 2009, giving the casino and race track operator, with 19 facilities in 15 jurisdictions, a foothold in the Las Vegas market. Reports of a potential deal between MGM Mirage and Wyomissing, Pa.-based Penn National surfaced soon after MGM Mirage signed an agreement Dec. 15 to sell Treasure Island for $775 million to former New Frontier owner Phil Ruffin. However, such myths were dispelled lately. "Are we announcing the sale of The Mirage? No," Chairman and Chief Executive Officer Jim Murren said recently.

The company however did show some strains of lowered business when  Penn National Gaming says it could lay off up to 15 workers from its casino in south-central Pennsylvania in early December. Company spokesman Eric Schippers says the economic downturn is forcing staff cuts at the Hollywood Casino at Penn National Race Course near Harrisburg. The casino opened in February 2008 and employs 900 people.

It has also been rumored that the company is one of the bidders for Maryland’s auction of the five slot licenses. Among the five slots available, one is issued in each of the prescribed gaming zones. The winner of the Anne Arundel County permit will be able to install as many as 4,750 slot machines, while Rocky Gap will be able to offer as many as 1,500 machines, lottery officials said. The Cecil County permit holder, they added, will be able to install no more than 2,500 machines. Each bidder will have to pay an up-front licensing fee of $3 million per 500 slot machines, officials said. In the case of Cecil County, that could add up to nearly $15 million. Penn officials had previously expressed interest in the Cecil County license. The company is supposed to have contributed nearly $2 million to a political action committee in the hope of getting a recent slots initiative passed in Maryland.

Also, s judge wants attorneys for Cherokee County and Penn National Gaming to discuss a settlement in a lawsuit filed by the county. The county's lawsuit, filed in September, seeks damages of $53 million, alleging breach of contract by the casino company. Penn National on Sept. 11 withdrew from a plan to build a casino in Cherokee County. The company cited competition from the Quapaw Tribe's Downstream Casino Resort and Penn's inability to also secure a contract to build a casino in Sumner County. The law allowing state-owned casinos required a minimum $225 million investment, which Penn National had planned to invest over several years. Cooper said the judge in the case asked whether the attorneys for both parties had discussed a settlement and told them to do so.

Earnings Estimates
Current Estimates: $0.25
Number of Estimates: 12
High Estimate: $0.28
Low Estimate: $0.16
Last Year EPS: $0.36
Percentage Growth: -31.00 %