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What's in Store for Penn National's (PENN) Q3 Earnings?

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Penn National Gaming, Inc. (PENN - Free Report) is scheduled to report third-quarter 2021 results on Nov 4, 2021, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 25.8%.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter earnings is pegged at 84 cents, indicating a decline of 9.7% year over year. The consensus mark for revenues stands at $1.5 billion, suggesting an improvement of 32.8% from the year-ago quarter.

Factors to Note

Penn National’s third-quarter results are likely to reflect sturdy contribution from online and retail Barstool Sportsbooks and iCasino offerings (coupled with the integration of mychoice player loyalty program). Enhanced vaccinations continue to benefit the gaming industry. The Zacks Consensus Estimate for third-quarter gaming revenues is pegged at $1,224 million, suggesting an improvement of 23.1% from the prior-year quarter.

The company may have witnessed solid segmental performance in the third quarter owing to additional easing of restrictions. The Zacks Consensus Estimate for the third-quarter revenues in Northeast, West, and Midwest segment is currently pegged at $663 million, $133 million and $275 million, indicating a surge of 21.7%, 68.4% and 20.1%, respectively, from the year-ago quarter. Meanwhile, the consensus mark for Other and South segments stands at $99 million and $318 million, which indicates growth of 317.7% and 24.2%, respectively, from the prior-year quarter’s levels.

Penn National continues to transition toward the new generation of cordless, cashless and contactless technology, collectively known as 3Cs. Amid the ongoing pandemic, such initiatives are likely to have improved efficiency and customer service, thereby may have contributed to the quarterly performance.

Penn National Gaming, Inc. Price and EPS Surprise Penn National Gaming, Inc. Price and EPS Surprise

Penn National Gaming, Inc. price-eps-surprise | Penn National Gaming, Inc. Quote

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Penn National this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Penn National has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3.

Stocks With Favorable Combination

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to beat estimates this time around.

Golden Entertainment, Inc. (GDEN - Free Report) has a Zacks Rank #1 and an Earnings ESP of +18.44%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Accel Entertainment, Inc. (ACEL - Free Report) has a Zacks Rank #2 and an Earnings ESP of +20.00%.

Choice Hotels International, Inc. (CHH - Free Report) has a Zacks Rank #2 and an Earnings ESP of +6.44%.