Casino, sports betting and entertainment operator PENN Entertainment (NASDAQ:PENN) will be reporting earnings this Thursday before market hours. Here’s what to look for.
PENN Entertainment beat analysts’ revenue expectations last quarter, reporting revenues of $1.78 billion, up 6.4% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
Is PENN Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PENN Entertainment’s revenue to grow 5.4% year on year, in line with the 6.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PENN Entertainment has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at PENN Entertainment’s peers in the consumer discretionary - casino operator segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Wynn Resorts delivered year-on-year revenue growth of 6.9%, beating analysts’ expectations by 1.4%, and Red Rock Resorts reported a revenue decline of 3%, topping estimates by 2.2%.
Read our full analysis of Wynn Resorts’s results here and Red Rock Resorts’s results here.
Investors in the consumer discretionary - casino operator segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. PENN Entertainment is down 5.2% during the same time and is heading into earnings with an average analyst price target of $23.45 (compared to the current share price of $20.04).
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