PENN Entertainment, Inc. (PENN - Free Report) reported third-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The quarterly earnings increased but revenues declined on a year-over-year basis.
Following the results, the company’s shares gained 14% during trading hours on Nov 2.
Earnings & Revenue Discussion
In the quarter under review, PENN reported adjusted earnings per share (EPS) of $1.21, handily beating the Zacks Consensus Estimate of 33 cents by 266.7%. In the prior-year quarter, it reported adjusted EPS of 72 cents.
Total revenues of $1,619.4 million beat the Zacks Consensus Estimate of $1,606 million. The top line declined 0.3% on a year-over-year basis. Softness in the South and West regions led to the decline.
The Northeast segment delivered revenues of $687 million, up from $685.4 million a year ago. Our model predicted the metric to rise 5.8% year over year to $725.2 million. Revenues from the South, West and Midwest segments came in at $308.2 million, $135.1 million and $293.4 million, down 6.5%, 13.7% and 1.7% year over year, respectively.
The Interactive and Other segments’ revenues totaled $196.3 million and $4.5 million, up 23.7% and 7.1% year over year, respectively.
Operating Headlines
In the quarter under discussion, adjusted EBITDAR declined 5.7% from the year-ago quarter’s level to $445.1 million. Our model suggested the metric to fall 4.5% year over year. Adjusted EBITDAR margin contracted 150 basis points to 27.5%.
Other Financial Information
As of Sep 30, 2023, the company had cash and cash equivalents of $1,317.9 million compared with $1,624 million as of Dec 31, 2022. Traditional net debt as of Sep 30, 2023, was $1,344.1 million, up from $1,075.8 million at 2022-end. The company’s total liquidity as of Sep 30, 2023, was $1.3 billion.
Zacks Rank & Key Picks
PENN Entertainment currently has a Zacks Rank #3 (Hold).
Live Nation Entertainment, Inc. (LYV - Free Report) sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 34.6%, on average. Shares of LYV have declined 3.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates 21.6% and 59.4% growth, respectively, from a year ago.
AMC Entertainment Holdings, Inc. (AMC - Free Report) flaunts a Zacks Rank #1. AMC has a trailing four-quarter earnings surprise of 44.2% on average. The stock has lost 32.9% in the past year.
The Zacks Consensus Estimate for AMC’s 2024 sales and EPS implies improvements of 19.5% and 72.8%, respectively, from the prior-year levels.
OneSpaWorld Holdings Limited (OSW - Free Report) sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have increased 10.1% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS suggests advancements of 44.5% and 117.9%, respectively, from the year-earlier levels.
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PENN Entertainment, Inc. (PENN - Free Report) reported third-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The quarterly earnings increased but revenues declined on a year-over-year basis.
Following the results, the company’s shares gained 14% during trading hours on Nov 2.
Earnings & Revenue Discussion
In the quarter under review, PENN reported adjusted earnings per share (EPS) of $1.21, handily beating the Zacks Consensus Estimate of 33 cents by 266.7%. In the prior-year quarter, it reported adjusted EPS of 72 cents.
Total revenues of $1,619.4 million beat the Zacks Consensus Estimate of $1,606 million. The top line declined 0.3% on a year-over-year basis. Softness in the South and West regions led to the decline.
The Northeast segment delivered revenues of $687 million, up from $685.4 million a year ago. Our model predicted the metric to rise 5.8% year over year to $725.2 million. Revenues from the South, West and Midwest segments came in at $308.2 million, $135.1 million and $293.4 million, down 6.5%, 13.7% and 1.7% year over year, respectively.
The Interactive and Other segments’ revenues totaled $196.3 million and $4.5 million, up 23.7% and 7.1% year over year, respectively.
Operating Headlines
In the quarter under discussion, adjusted EBITDAR declined 5.7% from the year-ago quarter’s level to $445.1 million. Our model suggested the metric to fall 4.5% year over year. Adjusted EBITDAR margin contracted 150 basis points to 27.5%.
Other Financial Information
As of Sep 30, 2023, the company had cash and cash equivalents of $1,317.9 million compared with $1,624 million as of Dec 31, 2022. Traditional net debt as of Sep 30, 2023, was $1,344.1 million, up from $1,075.8 million at 2022-end. The company’s total liquidity as of Sep 30, 2023, was $1.3 billion.
Zacks Rank & Key Picks
PENN Entertainment currently has a Zacks Rank #3 (Hold).
Live Nation Entertainment, Inc. (LYV - Free Report) sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 34.6%, on average. Shares of LYV have declined 3.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates 21.6% and 59.4% growth, respectively, from a year ago.
AMC Entertainment Holdings, Inc. (AMC - Free Report) flaunts a Zacks Rank #1. AMC has a trailing four-quarter earnings surprise of 44.2% on average. The stock has lost 32.9% in the past year.
The Zacks Consensus Estimate for AMC’s 2024 sales and EPS implies improvements of 19.5% and 72.8%, respectively, from the prior-year levels.
OneSpaWorld Holdings Limited (OSW - Free Report) sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have increased 10.1% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS suggests advancements of 44.5% and 117.9%, respectively, from the year-earlier levels.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
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