PENN Entertainment (NASDAQ:PENN), a prominent player in the casino, sports betting, and entertainment industry, is set to release its earnings report on Thursday morning. Investors are keenly interested in the company’s performance heading into this event.
In the previous quarter, PENN Entertainment surpassed analysts’ revenue predictions by 1.9%, generating $1.77 billion in revenues, which marked a 6.1% increase year-over-year. However, the quarter presented a mixed picture, as the company met analysts’ earnings per share (EPS) estimates but notably fell short of the earnings before interest, taxes, depreciation, and amortization (EBITDA) forecasts.
Looking ahead, analysts anticipate a 5.4% year-over-year revenue growth for PENN this quarter, estimating revenues at $1.73 billion, an improvement from last year’s growth of just 1.2% in the same period. A slight adjusted loss of -$0.03 per share is also expected.
Interestingly, analysts have reaffirmed their estimates for PENN Entertainment over the past month, suggesting a confidence that the company will maintain its performance metrics. Since going public, PENN has only missed Wall Street’s revenue estimates once and has, on average, exceeded top-line expectations by 0.1%.
Comparing PENN’s performance to its peers in the casino operator domain provides additional context. Notably, Boyd Gaming reported a year-over-year revenue increase of 4.5%, significantly beating forecasts by 15.7%. In contrast, Red Rock Resorts saw a more modest revenue rise of 1.6%, which fell short of its estimates by 0.8%. Following their respective earnings reports, Boyd Gaming experienced a decline of 7.3% in share price while Red Rock Resorts dropped 11.8%.
The general market environment has been tumultuous, particularly following the political developments surrounding Trump’s November win, which initially boosted major indices. However, potential tariffs have since caused market volatility, leading casino stocks to underperform lately, with an average decline of 7% in share prices over the past month. PENN Entertainment has experienced a 12.5% drop during this same period, approaching earnings with a current share price of $16.17 against an average analyst price target of $22.14.
As anticipation builds for PENN Entertainment’s upcoming earnings report, investors remain eager to see if the company can deliver results that align with market expectations.