M Resort acquisition brings increases to Penn National 2011 forecasts

Penn National Gaming Inc. said Thursday it expects to take ownership of the M Resort in Las Vegas in June. The operator of 25 casinos and racetracks also raised its 2011 profit and revenue forecasts.

Full-year profit was expected to rise to $1.64 a share, up from $1.48 forecast in February, the company said in a statement. Analysts surveyed by Yahoo Finance had expected earnings at $1.53 a share for 2011.

Penn National in February entered an asset-purchase agreement that provides for the conversion of the property’s debt, which was purchased last year for approximately $230.5 million. The property generated adjusted earnings of $6.2 million in the first quarter, Carlino said in a statement.

Penn National reported net income of $51.5 million, or 48 cents a share, for its first quarter ended March 31, compared with $36.2 million, or 34 cents a share, a year earlier.

Revenue rose 13 percent to $667 million.