Casino, sports betting and entertainment operator PENN Entertainment (NASDAQ: PENN) will be reporting earnings this Thursday morning. Here’s what investors should know.
PENN Entertainment met analysts’ revenue expectations last quarter, reporting revenues of $1.86 billion, up 5.2% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
Is PENN Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PENN Entertainment’s revenue to grow 7.2% year on year, improving from the 4.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PENN Entertainment has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at PENN Entertainment’s peers in the consumer discretionary - casino operator segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Boyd Gaming’s revenues decreased 1.4% year on year, missing analysts’ expectations by 1.1%, and Monarch reported revenues up 2.4%, falling short of estimates by 0.7%. Boyd Gaming’s stock price was unchanged after the resultswhile Monarch was down 2.6%.
Read our full analysis of Boyd Gaming’s results here and Monarch’s results here.
There has been positive sentiment among investors in the consumer discretionary - casino operator segment, with share prices up 4.7% on average over the last month. PENN Entertainment is up 12.8% during the same time and is heading into earnings with an average analyst price target of $23.47 (compared to the current share price of $17.03).
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