Preview: PENN Entertainment's Earnings
PENN Entertainment (NASDAQ:PENN) is set to give its latest quarterly earnings report on Thursday, 2025-08-07. Here's what investors need to know before the announcement.
Analysts estimate that PENN Entertainment will report an earnings per share (EPS) of $-0.01.
PENN Entertainment bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Earnings Track Record
In the previous earnings release, the company missed EPS by $0.17, leading to a 2.29% increase in the share price the following trading session.
Here's a look at PENN Entertainment's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | -0.08 | -0.37 | -0.24 | -0.26 |
| EPS Actual | -0.25 | -0.44 | -0.25 | -0.18 |
| Price Change % | 2.0% | 5.0% | 1.0% | -3.0% |
Market Performance of PENN Entertainment's Stock
Shares of PENN Entertainment were trading at $17.39 as of August 05. Over the last 52-week period, shares are down 8.73%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analyst Opinions on PENN Entertainment
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on PENN Entertainment.
Analysts have given PENN Entertainment a total of 7 ratings, with the consensus rating being Outperform. The average one-year price target is $22.14, indicating a potential 27.31% upside.
Peer Ratings Overview
The following analysis focuses on the analyst ratings and average 1-year price targets of Genius Sports, Monarch Casino & Resort and Rush Street Interactive, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Genius Sports, with an average 1-year price target of $13.5, suggesting a potential 22.37% downside.
- Analysts currently favor an Buy trajectory for Monarch Casino & Resort, with an average 1-year price target of $101.5, suggesting a potential 483.67% upside.
- Analysts currently favor an Buy trajectory for Rush Street Interactive, with an average 1-year price target of $18.57, suggesting a potential 6.79% upside.
Summary of Peers Analysis
The peer analysis summary presents essential metrics for Genius Sports, Monarch Casino & Resort and Rush Street Interactive, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| PENN Entertainment | Outperform | 4.08% | $553.80M | 3.83% |
| Genius Sports | Buy | 20.28% | $35.20M | -1.28% |
| Monarch Casino & Resort | Buy | 6.84% | $76.20M | 5.03% |
| Rush Street Interactive | Buy | 22.16% | $95.07M | 16.34% |
Key Takeaway:
PENN Entertainment ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.
Unveiling the Story Behind PENN Entertainment
Penn Entertainment's origins date back to its 1972 racetrack opening in Pennsylvania. Today, Penn operates 43 properties across 20 states and 12 brands, including Hollywood Casino and Ameristar. Land-based casinos represented 85% of total sales in 2024; 15% was from the interactive segment, which includes sports, iGaming, and media revenue. The retail portfolio generates mid-30s EBITDAR margins and helps position the company to obtain licenses for the digital wagering markets. Additionally, Penn's media assets, theScore and ESPN (starting with its partnership launch in November 2023), provide access to sports betting/iGaming technology and clientele, helping it form a leading digital position.
Financial Milestones: PENN Entertainment's Journey
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: PENN Entertainment's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 4.08%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: PENN Entertainment's net margin is impressive, surpassing industry averages. With a net margin of 6.68%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): PENN Entertainment's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.83% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): PENN Entertainment's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.74%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 3.7.
To track all earnings releases for PENN Entertainment visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
