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PENN Entertainment (PENN) Q3 Earnings & Revenues Top Estimates
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PENN Entertainment, Inc. (PENN - Free Report) reported its third-quarter 2022 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased year over year.
Earnings & Revenue Discussion
In the quarter under review, the company reported adjusted earnings per share (EPS) of 72 cents, beating the Zacks Consensus Estimate of 38 cents by 89.5%. The bottom line increased 38.5% from 52 cents reported in the prior-year quarter.
During the third quarter, total revenues of $1,625 million beat the Zacks Consensus Estimate of $1,581 million by 2.8%. The top line increased 7.5% on a year-over-year basis. The upside was primarily backed by an omnichannel strategy, technological investments and improved visitation from younger demographics.
The Northeast segment delivered revenues of $685.4 million, up 1.9% year over year. The South, West, Midwest, Interactive and Other segments’ revenues were $329.8 million, $156.5 million, $298.4 million, $158.7 million and $4.2 million, up 3.6%, 7.4%, 4.4%, 70.6% and 20% year over year, respectively.
PENN Entertainment, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDAR declined 1.7% from the year-ago quarter’s level to $471.9 million. Adjusted EBITDAR margin contracted 280 basis points to 29%.
Other Financial Information
As of Sep 30, 2022, the company had cash and cash equivalents of $1,728.4 million compared with $1,863.9 million as of Dec 31, 2021. Bank debt as of Sep 30, 2022, was $1,540.6 million, down from $1,563.7 million at 2021-end.
For the third quarter, the company repurchased 5,348,809 shares of its common stock worth approximately $168 million. It also stated the availability of $211.1 million under its $750 million repurchase program.
2022 Guidance
The company reiterated its 2022 guidance. For 2022, the company anticipates net revenues in the range of $6.15-$6.55 billion. Adjusted EBITDAR for 2022 is expected in the range of $1.9-$2 billion.
Zacks Rank & Other Key Picks
PENN Entertainment currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for MAR’s current financial year sales and EPS indicates a surge of 46.8% and 104.1%, respectively, from the year-ago period’s reported levels.
Crocs currently carries a Zacks Rank #2. CROX has a long-term earnings growth rate of 15%. Shares of Crocs have plunged 57.7% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 49.6% and 20.7%, respectively, from the year-ago period’s levels.
Caesars Entertainment carries a Zacks Rank #2. The stock has declined 59.6% in the past year.
The Zacks Consensus Estimate for CZR’s current financial year sales and EPS indicates growth of 14.1% and 25.9%, respectively, from the year-ago period’s reported levels.
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PENN Entertainment (PENN) Q3 Earnings & Revenues Top Estimates
PENN Entertainment, Inc. (PENN - Free Report) reported its third-quarter 2022 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased year over year.
Earnings & Revenue Discussion
In the quarter under review, the company reported adjusted earnings per share (EPS) of 72 cents, beating the Zacks Consensus Estimate of 38 cents by 89.5%. The bottom line increased 38.5% from 52 cents reported in the prior-year quarter.
During the third quarter, total revenues of $1,625 million beat the Zacks Consensus Estimate of $1,581 million by 2.8%. The top line increased 7.5% on a year-over-year basis. The upside was primarily backed by an omnichannel strategy, technological investments and improved visitation from younger demographics.
The Northeast segment delivered revenues of $685.4 million, up 1.9% year over year. The South, West, Midwest, Interactive and Other segments’ revenues were $329.8 million, $156.5 million, $298.4 million, $158.7 million and $4.2 million, up 3.6%, 7.4%, 4.4%, 70.6% and 20% year over year, respectively.
PENN Entertainment, Inc. Price, Consensus and EPS Surprise
PENN Entertainment, Inc. price-consensus-eps-surprise-chart | PENN Entertainment, Inc. Quote
Operating Headlines
Adjusted EBITDAR declined 1.7% from the year-ago quarter’s level to $471.9 million. Adjusted EBITDAR margin contracted 280 basis points to 29%.
Other Financial Information
As of Sep 30, 2022, the company had cash and cash equivalents of $1,728.4 million compared with $1,863.9 million as of Dec 31, 2021. Bank debt as of Sep 30, 2022, was $1,540.6 million, down from $1,563.7 million at 2021-end.
For the third quarter, the company repurchased 5,348,809 shares of its common stock worth approximately $168 million. It also stated the availability of $211.1 million under its $750 million repurchase program.
2022 Guidance
The company reiterated its 2022 guidance. For 2022, the company anticipates net revenues in the range of $6.15-$6.55 billion. Adjusted EBITDAR for 2022 is expected in the range of $1.9-$2 billion.
Zacks Rank & Other Key Picks
PENN Entertainment currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are Marriott International, Inc. (MAR - Free Report) , Crocs, Inc. (CROX - Free Report) and Caesars Entertainment, Inc. (CZR - Free Report) .
Marriott carries a Zacks Rank #2. MAR has a trailing four-quarter earnings surprise of 18.6% on average. The stock has declined 12.6% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for MAR’s current financial year sales and EPS indicates a surge of 46.8% and 104.1%, respectively, from the year-ago period’s reported levels.
Crocs currently carries a Zacks Rank #2. CROX has a long-term earnings growth rate of 15%. Shares of Crocs have plunged 57.7% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 49.6% and 20.7%, respectively, from the year-ago period’s levels.
Caesars Entertainment carries a Zacks Rank #2. The stock has declined 59.6% in the past year.
The Zacks Consensus Estimate for CZR’s current financial year sales and EPS indicates growth of 14.1% and 25.9%, respectively, from the year-ago period’s reported levels.