TSX Composite Index (TXCX) Quote – Press Release

Casino, sports betting and entertainment operator PENN Entertainment (NASDAQ:PENN) will be reporting earnings tomorrow before market open. Here’s what to look for.

PENN Entertainment missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $1.61 billion, down 4% year on year. It was a weak quarter for the company, with a miss of analysts’ earnings 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 decline 1.3% year on year to $1.65 billion, a reversal from the 2.9% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.20 per share.

The majority of analysts covering the company have 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 twice over the last two years.

Looking at PENN Entertainment’s peers in the casino operator segment, some have already reported their Q2 results, giving us a hint as to what we can expect. MGM Resorts delivered year-on-year revenue growth of 9.8%, beating analysts’ expectations by 2.9%, and Wynn Resorts reported revenues up 8.6%, in line with consensus estimates. MGM Resorts traded down 13.3% following the results.

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

Investors in the casino operator segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. PENN Entertainment is down 12.8% during the same time and is heading into earnings with an average analyst price target of $22.2 (compared to the current share price of $17.47).

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