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PENN Entertainment (PENN) Q3 Earnings & Revenues Top Estimates
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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.
PENN Entertainment, Inc. Price, Consensus and EPS Surprise
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 (PENN) Q3 Earnings & Revenues Top Estimates
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.
PENN Entertainment, Inc. Price, Consensus and EPS Surprise
PENN Entertainment, Inc. price-consensus-eps-surprise-chart | PENN Entertainment, Inc. Quote
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.