UPDATE 3-Penn National raises outlook, shares jump

* Q2 adjusted EPS $0.29 vs Wall Street view $0.28

* Revenue up 3 percent

* Shares rise 11 percent (Adds analyst comment, updates stock price)

LOS ANGELES, July 22 (Reuters) - Casino operator Penn National Gaming Co (PENN.O) posted a better-than-expected quarterly profit on Thursday and raised its full-year revenue forecast, sending its shares up 11 percent.

The company -- which operates casinos, racetracks and off-track wagering sites in 15 states and Ontario, Canada -- posted an adjusted profit of 29 cents a share, ahead of the 28 cents a share forecast by analysts, according to Thomson Reuters I/B/E/S.

The company focused on "navigating the current environment and driving operating margin improvements" through cost reductions and effective spending on marketing, CEO Peter Carlino said in a statement.

"Penn has proven to be a capable operator in perhaps the worst downturn in the gaming industry's history," Morgan Joseph analyst Justin Sebastiano said in a research note. "What's more, Penn has enough growth opportunities/potential to grow the top line while others, not having a project pipeline, may find it difficult."

The company has expansion plans in West Virginia, Pennsylvania, Maryland, Kansas and Ohio -- but Penn officials said on a conference call that they see no compelling opportunities for entering the Las Vegas market.

Including 20 cents per share in one time items related to impairment losses in Ohio and a contract ending in Illinois, net income fell to $9.2 million, or 9 cents a share, from $28.5 million, or 27 cents a share, a year earlier.

Revenue rose 3 percent to $598.3 million, beating the $597.1 million expected by analysts.

Looking ahead, Penn said it expects third-quarter earnings of 30 cents per share on revenue of $622.9 million.

For the year, Penn lowered its outlook for net income per share to 98 cents from a previous estimate of $1.13, but that includes the second quarter's charges. Without the charges, the new forecast would be $1.18 per share.

The company raised its full-year revenue outlook to $2.44 billion from $2.41 billion.

Penn shares were up $2.67 at $26.77 in Nasdaq trading. (Reporting by Deena Beasley; Editing by Derek Caney, Robert MacMillan, Gary Hill)