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PENN Entertainment (PENN) Reports Wider Q1 Loss, Stock Down
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PENN Entertainment, Inc. (PENN - Free Report) reported wider-than-expected loss in first-quarter 2024 results. Both the top and bottom lines missed the Zacks Consensus Estimate for the second straight quarter. Following the results, the company’s shares lost 8.8% during trading hours on May 2.
PENN's quarterly performance was hampered by disappointing results of its Interactive segment primarily due to an unfavorable outcome from major sporting events.
Earnings & Revenue Discussion
In the quarter under review, PENN reported adjusted loss per share of 79 cents, wider than the Zacks Consensus Estimate of a loss of 59 cents. In the prior-year quarter, it reported adjusted earnings per share (EPS) of 39 cents.
Total revenues of $1,606.9 million missed the Zacks Consensus Estimate of $1,633 million. The top line declined 4% on a year-over-year basis. Softness in the South and Northeast segments led to this fall.
The Northeast segment delivered revenues of $684.7 million, down 2.3% year over year. Revenues from the South, West and Midwest segments came in at $298.5 million, $128.8 million and $291.2 million, down 5.2%, 0.7% and 1.4% year over year, respectively.
The Interactive and Other segments’ revenues totaled $6 million and ($10) million compared with $5.8 million and ($6.3) million, respectively, in the prior-year quarter.
PENN Entertainment, Inc. Price, Consensus and EPS Surprise
In the quarter under discussion, adjusted EBITDAR declined 46.4% from the prior-year quarter’s level to $256.2 million. Adjusted EBITDAR margin contracted to 15.9% from 28.6% a year ago.
Notably, Penn Entertainment's Interactive gambling division incurred adjusted EBITDAR loss of $196 million compared with $5.7 million in the prior-year quarter.
Other Financial Information
As of Mar 31, 2024, PENN had cash and cash equivalents of $903.6 million compared with $1.1 billion as of Dec 31, 2023. Traditional net debt as of Mar 31, 2024, was $2.63 billion, up from $2.64 billion at 2023-end. Total liquidity as of Mar 31, 2024, was $1.9 billion.
Boyd Gaming Corporation (BYD - Free Report) reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines declined on a year-over-year basis.
During the quarter, BYD’s performance was impacted by January's severe winter weather in the Midwest and South, and a softer Las Vegas local market. The combined effect of these challenges fell within the anticipated range, aligning with earlier projections of $20-$25 million in EBITDAR for 2024.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand), solid onboard spending and favorable timing of expenses. It also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand.
Pool Corporation (POOL - Free Report) reported drab first-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Also, the top and bottom lines declined year over year. During the quarter, POOL’s operations were affected by lower pool construction activity, economic pressures and weather-related constraints.
POOL raised its annual earnings guidance range to account for year-to-date tax benefits. It expects sales and gross margin trends to improve with the onset of the swimming pool season, aligning with seasonal buying patterns.
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PENN Entertainment (PENN) Reports Wider Q1 Loss, Stock Down
PENN Entertainment, Inc. (PENN - Free Report) reported wider-than-expected loss in first-quarter 2024 results. Both the top and bottom lines missed the Zacks Consensus Estimate for the second straight quarter. Following the results, the company’s shares lost 8.8% during trading hours on May 2.
PENN's quarterly performance was hampered by disappointing results of its Interactive segment primarily due to an unfavorable outcome from major sporting events.
Earnings & Revenue Discussion
In the quarter under review, PENN reported adjusted loss per share of 79 cents, wider than the Zacks Consensus Estimate of a loss of 59 cents. In the prior-year quarter, it reported adjusted earnings per share (EPS) of 39 cents.
Total revenues of $1,606.9 million missed the Zacks Consensus Estimate of $1,633 million. The top line declined 4% on a year-over-year basis. Softness in the South and Northeast segments led to this fall.
The Northeast segment delivered revenues of $684.7 million, down 2.3% year over year. Revenues from the South, West and Midwest segments came in at $298.5 million, $128.8 million and $291.2 million, down 5.2%, 0.7% and 1.4% year over year, respectively.
The Interactive and Other segments’ revenues totaled $6 million and ($10) million compared with $5.8 million and ($6.3) million, respectively, in the prior-year quarter.
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 46.4% from the prior-year quarter’s level to $256.2 million. Adjusted EBITDAR margin contracted to 15.9% from 28.6% a year ago.
Notably, Penn Entertainment's Interactive gambling division incurred adjusted EBITDAR loss of $196 million compared with $5.7 million in the prior-year quarter.
Other Financial Information
As of Mar 31, 2024, PENN had cash and cash equivalents of $903.6 million compared with $1.1 billion as of Dec 31, 2023. Traditional net debt as of Mar 31, 2024, was $2.63 billion, up from $2.64 billion at 2023-end. Total liquidity as of Mar 31, 2024, was $1.9 billion.
Zacks Rank & Peer Releases
PENN Entertainment currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boyd Gaming Corporation (BYD - Free Report) reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines declined on a year-over-year basis.
During the quarter, BYD’s performance was impacted by January's severe winter weather in the Midwest and South, and a softer Las Vegas local market. The combined effect of these challenges fell within the anticipated range, aligning with earlier projections of $20-$25 million in EBITDAR for 2024.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand), solid onboard spending and favorable timing of expenses. It also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand.
Pool Corporation (POOL - Free Report) reported drab first-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Also, the top and bottom lines declined year over year. During the quarter, POOL’s operations were affected by lower pool construction activity, economic pressures and weather-related constraints.
POOL raised its annual earnings guidance range to account for year-to-date tax benefits. It expects sales and gross margin trends to improve with the onset of the swimming pool season, aligning with seasonal buying patterns.