PENN Entertainment (PENN) Reports Q1: Everything You Need To Know Ahead Of Earnings

Casino, sports betting and entertainment operator PENN Entertainment (NASDAQ:PENN) will be reporting earnings tomorrow before the bell. Here’s what to expect.

PENN Entertainment met analysts’ revenue expectations last quarter, reporting revenues of $1.67 billion, up 19.6% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.

Is PENN Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting PENN Entertainment’s revenue to grow 5.9% year on year to $1.70 billion, a reversal from the 4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PENN Entertainment has missed Wall Street’s revenue estimates four times over the last two years.

Looking at PENN Entertainment’s peers in the casino operator segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Wynn Resorts’s revenues decreased 8.7% year on year, missing analysts’ expectations by 1.8%, and Monarch reported revenues up 3.1%, topping estimates by 2.1%. Monarch traded up 2.2% following the results.

Read our full analysis of Wynn Resorts’s results here and Monarch’s results here.

There has been positive sentiment among investors in the casino operator segment, with share prices up 12.7% on average over the last month. PENN Entertainment is up 14% during the same time and is heading into earnings with an average analyst price target of $22.53 (compared to the current share price of $15.67).

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