PENN Entertainment, Inc. PENN reported Q3 2023 earnings and revenue that beat the Zacks Consensus Estimate. Quarterly earnings increased, but revenue declined year-over-year.
Following the results, the company’s shares rose 14% during trading hours on November 2.
Discussion of earnings and revenue
During the quarter under review, PENN reported adjusted earnings per share (EPS) of $1.21, beating the Zacks’ consensus estimate of 33 cents by 266.7%. In the year-ago quarter, it reported adjusted earnings per share of 72 cents.
Total revenue of $1,619.4 million beat the Zacks Consensus Estimate of $1,606 million. The top line was down 0.3% year-on-year. Mildness in the southern and western regions led to the decline.
The Northeast segment brought in $687 million in revenue, up from $685.4 million a year ago. Our model predicts that the metric will rise 5.8% year over year to $725.2 million. Revenues from the South, West and Midwest segments were $308.2 million, $135.1 million and $293.4 million, respectively, down 6.5%, 13.7% and 1.7% from the prior year.
Interactive and Other segment revenues were $196.3 million and $4.5 million, respectively, up 23.7% and 7.1% over the prior year.
PENN Entertainment, Inc. Price, Consensus and EPS surprise
PENN Entertainment, Inc. price-consensus-eps-surprise-chart | PENN Entertainment, Inc. Quote
In the quarter under review, adjusted EBITDAR decreased 5.7% from the prior quarter to $445.1 million. Our model suggested the metric would fall by 4.5% over the year. Adjusted EBITDAR margin contracted 150 basis points to 27.5%.
Other financial information
As of September 30, 2023, the company had cash and cash equivalents of $1,317.9 million compared to $1,624 million as of December 31, 2022. Traditional net debt as of September 30, 2023 was $1,344.1 million compared to $1,075.8 million dollars at the end of 2022. The company’s total liquidity as of September 30, 2023 was $1.3 billion.
Zacks Rank and Key Picks
PENN Entertainment currently has a Zacks Rank #3 (Hold).
Live Nation Entertainment, Inc. LYV has a Zacks Rank #1 (Strong Buy). There is a surprise for the last four quarters of earnings of an average of 34.6%. LYV shares are down 3.8% over the past year. You can see the full list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS shows year-over-year growth of 21.6% and 59.4%, respectively.
AMC Entertainment Holdings, Inc. AMC boasts a Zacks Rank #1. AMC has an earnings surprise over the last four quarters of an average of 44.2%. The stock has lost 32.9% over the past year.
The Zacks Consensus Estimate for AMC’s 2024 sales and EPS suggests year-over-year improvements of 19.5% and 72.8%, respectively.
OneSpaWorld Holdings Limited OSW has a Zacks Rank #1. OSW has an earnings surprise over the last four quarters of an average of 42.6%. Shares of OSW are up 10.1% over the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS suggests an advance of 44.5% and 117.9%, respectively, from year-ago levels.
Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report
PENN Entertainment, Inc. (PENN) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
OneSpaWorld Holdings Limited (OSW): Free Stock Analysis Report
To read this Zacks.com article, click here.
Zacks Investment Research