We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PENN Entertainment (PENN) Down 12.5% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for PENN Entertainment (PENN - Free Report) . Shares have lost about 12.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is PENN Entertainment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
PENN Entertainment Q2 Earnings & Revenues Top Estimates
PENN Entertainment reported second-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Earnings & Revenue Discussion
In the quarter under review, PENN reported adjusted earnings per share (EPS) of 48 cents beating the Zacks Consensus Estimate of 39 cents by 23.1%. In the prior-year quarter, it reported adjusted EPS of 15 cents.
Total revenues of $1,674.8 million beat the Zacks Consensus Estimate of $1,655 million. The top line improved 2.9% on a year-over-year basis, driven by solid performance in the Interactive segment.
The Northeast segment delivered revenues of $688 million, up 0.5% year over year. Our model predicted the metric to rise 2.9% year over year. Revenues from the Midwest, South and West segments came in at $293.3 million, $308.3 million and $130 million, down 1%, 8.9% and 15.5% year over year, respectively.
The Interactive and Other segments’ revenues totaled $257.7 million and $6.2 million, up 66.4% and 5.1% year over year, respectively.
Operating Headlines
During the quarter under discussion, adjusted EBITDAR declined 5.5% from the year-ago quarter’s level to $476.8 million. Adjusted EBITDAR margin contracted 250 basis points to 28.5%.
Other Financial Information
As of Jun 30, 2023, the company had cash and cash equivalents of $1,271.6 million compared with $1,624 million as of Dec 31, 2022. Bank debt as of Jun 30, 2023, was $1,512.5 million, down from $1,531.2 million at 2022 end. During the quarter under review, PENN repurchased $99.8 million of common stock.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -11.95% due to these changes.
VGM Scores
Currently, PENN Entertainment has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PENN Entertainment has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PENN Entertainment (PENN) Down 12.5% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for PENN Entertainment (PENN - Free Report) . Shares have lost about 12.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is PENN Entertainment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
PENN Entertainment Q2 Earnings & Revenues Top Estimates
PENN Entertainment reported second-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Earnings & Revenue Discussion
In the quarter under review, PENN reported adjusted earnings per share (EPS) of 48 cents beating the Zacks Consensus Estimate of 39 cents by 23.1%. In the prior-year quarter, it reported adjusted EPS of 15 cents.
Total revenues of $1,674.8 million beat the Zacks Consensus Estimate of $1,655 million. The top line improved 2.9% on a year-over-year basis, driven by solid performance in the Interactive segment.
The Northeast segment delivered revenues of $688 million, up 0.5% year over year. Our model predicted the metric to rise 2.9% year over year. Revenues from the Midwest, South and West segments came in at $293.3 million, $308.3 million and $130 million, down 1%, 8.9% and 15.5% year over year, respectively.
The Interactive and Other segments’ revenues totaled $257.7 million and $6.2 million, up 66.4% and 5.1% year over year, respectively.
Operating Headlines
During the quarter under discussion, adjusted EBITDAR declined 5.5% from the year-ago quarter’s level to $476.8 million. Adjusted EBITDAR margin contracted 250 basis points to 28.5%.
Other Financial Information
As of Jun 30, 2023, the company had cash and cash equivalents of $1,271.6 million compared with $1,624 million as of Dec 31, 2022. Bank debt as of Jun 30, 2023, was $1,512.5 million, down from $1,531.2 million at 2022 end. During the quarter under review, PENN repurchased $99.8 million of common stock.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -11.95% due to these changes.
VGM Scores
Currently, PENN Entertainment has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PENN Entertainment has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.