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What's in Store for Penn National Gaming (PENN) Q1 Earnings?

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Penn National Gaming, Inc. (PENN - Free Report) is scheduled to report first-quarter 2021 results on May 6, 2021. In the last reported quarter, the company reported an earnings miss of 66.7%.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter earnings is pegged at 30 cents, indicating an improvement of 400% from an earnings of 6 cents reported in the year-ago quarter. The consensus mark for revenues is pegged at nearly $1.14 billion, suggesting growth of 2.5% from the prior-year quarter.

Factors to Note

Penn National’s first-quarter performance is likely have benefited from robust demand for gaming revenues. Moreover, increased focus on the development of Barstool Sports betting app, Barstool-branded entertainment destinations, and omni-channel distribution strategy bode well. The Zacks Consensus Estimate for gaming revenues is pegged at $1,016 million, suggesting an improvement of 12.5% year over year.

The Zacks Consensus Estimate for the first-quarter revenues in Northeast, West, and Midwest segment is currently pegged at $499 million, $91 million and $217 million, indicating a decline of 4.4%, 28.3%, 34.8%, and 4.8%, respectively, from the year-ago quarter’s reported figure. However, the consensus mark for Other and South segments is pegged at $56 million and $248 million, which indicates growth of 175.9% and 11.2%, respectively, from the prior-year quarter’s levels.

Penn National continues to evolve toward the new generation of cordless, cashless and contactless technology, collectively known as 3C’s. Amid the ongoing pandemic, such initiatives are likely to have improved efficiency and customer service. This, in turn, might get reflected in the to-be-reported quarter’s top line.

Penn National Gaming, Inc. Price and EPS Surprise Penn National Gaming, Inc. Price and EPS Surprise

Penn National Gaming, Inc. price-eps-surprise | Penn National Gaming, Inc. Quote

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Penn National this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Penn National has an Earnings ESP of +41.63%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With Favorable Combination

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these too have the right combination of elements to beat estimates this time around.

Fox Corporation (FOXA - Free Report) has a Zacks Rank #1 and an Earnings ESP of +13.40%.

Choice Hotels International, Inc. (CHH - Free Report) has a Zacks Rank #3 and an Earnings ESP of +17.47%.

PlayAGS, Inc. (AGS - Free Report) has a Zacks Rank #3 and an Earnings ESP of +25.75%

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