Casino, sports betting and entertainment operator PENN Entertainment (NASDAQ:PENN) will be announcing earnings results this Thursday before market hours. Here’s what to expect.
PENN Entertainment missed analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $1.67 billion, up 4.1% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
Is PENN Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting PENN Entertainment’s revenue to grow 4.1% year on year to $1.73 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 16 analysts). PENN Entertainment has missed Wall Street’s revenue estimates five times over the last two years.
Looking at PENN Entertainment’s peers in the casino operator segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Red Rock Resorts delivered year-on-year revenue growth of 8.2%, beating analysts’ expectations by 8.4%, and Monarch reported revenues up 6.8%, topping estimates by 5.4%. Red Rock Resorts traded up 9.2% following the results while Monarch was also up 20.4%.
Read our full analysis of Red Rock Resorts’s results here and Monarch’s results here.
Investors in the casino operator segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. PENN Entertainment is down 5.8% during the same time and is heading into earnings with an average analyst price target of $22.06 (compared to the current share price of $17.26).
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