PENN Entertainment, Inc. (PENN – Free Report) reported third-quarter 2023 results, with earnings and revenue surpassing the Zacks Consensus Estimate. Quarterly profits rose, but revenue fell year-over-year.
Following the results, shares of the company rose 14% during trading hours on November 2nd.
Earnings and sales discussion
For the quarter, PENN reported adjusted earnings per share (EPS) of $1.21, significantly surpassing the Zacks Consensus Estimate of 33 cents by 266.7%. Adjusted earnings per share of 72 cents were reported in the year-earlier quarter.
Total revenue of $1,619.4 million exceeded the Zacks Consensus Estimate of $1,606 million. Sales fell 0.3% year over year. The slowdown in the South and West regions led to the decline.
The Northeast segment reported revenue of $687 million, up from $685.4 million last year. Our model predicted the metric would rise 5.8% year-over-year to $725.2 million. Revenues from the South, West and Midwest segments were $308.2 million, $135.1 million and $293.4 million, respectively, a decrease of 6.5%, 13.7% % or 1.7% compared to the previous year.
Interactive and Other segment revenues totaled $196.3 million and $4.5 million, respectively, an increase of 23.7% and 7.1%, respectively, from the prior year .
In the quarter discussed, adjusted EBITDAR fell 5.7% to $445.1 million compared to the same quarter last year. Our model suggested the metric would decline 4.5% year-over-year. Adjusted EBITDAR margin fell 150 basis points to 27.5%.
Other Financial Information
As of September 30, 2023, the Company had cash and cash equivalents of $1,317.9 million, compared to $1,624 million as of December 31, 2022. Traditional net debt was 1,344.1 as of September 30, 2023 million, an increase from $1,075.8 million at the end of 2022. The company’s total liquidity was $1.3 billion as of September 30, 2023.
Zack’s Rank and Key Tips
PENN Entertainment currently has a Zacks Rank #3 (Hold).
Live Nation Entertainment, Inc. (LIE – Free Report) has a Zacks Rank #1 (Strong Buy). The company has averaged an earnings surprise of 34.6% over the last four quarters. Shares of LYV have fallen 3.8% over 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 revenue and EPS suggests year-over-year growth of 21.6% and 59.4%, respectively.
AMC Entertainment Holdings, Inc. (AMC – Free report) flaunts a Zacks Rank #1. AMC has averaged an earnings surprise of 44.2% over the past four quarters. The stock has lost 32.9% over the past year.
The Zacks Consensus Estimate for AMC’s 2024 revenue and EPS implies year-over-year improvements of 19.5% and 72.8%, respectively.
OneSpaWorld Holdings Limited (OR – Free report) has a Zacks Rank #1. OSW has averaged an earnings surprise of 42.6% over the last four quarters. Shares of OSW are up 10.1% over the past year.
The Zacks Consensus Estimate for OSW’s 2023 revenue and EPS suggests year-over-year increases of 44.5% and 117.9%, respectively.
4 oil stocks with massive gains
Global demand for oil is surging… and oil producers are struggling to keep up. So even though oil prices are far from their recent highs, you can expect big profits from the companies that supply the world with “black gold.”
Zacks Investment Research just released an urgent special report to help you bet on this trend.
In Oil market on fire, you’ll discover four unexpected oil and gas stocks poised for big gains in the coming weeks and months. You shouldn’t miss these recommendations.
Download your free report now to view them.