What To Expect From PENN Entertainment’s (PENN) Q3 Earnings

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

PENN Entertainment met analysts’ revenue expectations last quarter, reporting revenues of $1.66 billion, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ earnings estimates but a miss of analysts’ EBITDA 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 2.2% year on year to $1.66 billion, improving from its flat revenue in the same quarter last year. Adjusted loss is expected to come in at -$0.22 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 12 downward revisions over the last 30 days (we track 17 analysts). PENN Entertainment has missed Wall Street’s revenue estimates twice over the last two years.

Looking at PENN Entertainment’s peers in the casino operator segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Boyd Gaming delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 4.8%, and Monarch reported revenues up 3.7%, topping estimates by 2.9%. Boyd Gaming traded up 7.8% following the results while Monarch was also up 6.4%.

Read our full analysis of Boyd Gaming’s results here and Monarch’s results here.

There has been positive sentiment among investors in the casino operator segment, with share prices up 3.3% on average over the last month. PENN Entertainment’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $22.41 (compared to the current share price of $18.52).

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