Casino, sports betting and entertainment operator PENN Entertainment (NASDAQ:PENN) will be reporting results tomorrow before market hours. Here's what investors should know.
Last quarter PENN Entertainment reported revenues of $1.62 billion, down 0.3% year on year, in line with analyst expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
This quarter analysts are expecting PENN Entertainment's revenue to decline 2.6% year on year to $1.54 billion, a further deceleration on the 0.8% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.46 per share.
The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.1%.
Looking at PENN Entertainment's peers in the casinos and gaming segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. MGM Resorts delivered top-line growth of 21.8% year on year, beating analyst estimates by 5.8% and Boyd Gaming reported revenues up 3.4% year on year, exceeding estimates by 2.7%. MGM Resorts traded down 2.1% on the results, and Boyd Gaming was up 3.8%.
There has been positive sentiment among investors in the casinos and gaming segment, with the stocks up on average 3.2% over the last month. PENN Entertainment is down 1.8% during the same time, and is heading into the earnings with analyst price target of $29.7, compared to share price of $22.8.
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