PENN Entertainment (PENN) Top Q3 Earnings and Revenue Estimates – November 3, 2023

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 .

Operational headlines

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.

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