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PENN Entertainment Q3 revenue meets estimates, adjusted EBITDA misses

By Reuters News


Overview

  • US casino and online gaming operator's Q3 revenue was in line with analyst expectations

  • Q3 adjusted EBITDA missed analyst estimates

  • Company reported record Q3 retail segment revenue and improved interactive segment profitability


Outlook

  • PENN expects to achieve its full-year Adjusted EBITDA target in the Interactive segment

  • Company says healthy operating trends in Retail and Interactive segments continued through October

  • Company sees US iCasino and Canada as key drivers of profitable growth


Result Drivers

  • RETAIL SEGMENT GROWTH - Co said record Q3 retail segment revenue was driven by same-store growth and contributions from completed development projects

  • CUSTOMER SPEND - Co said property-level performance was supported by increases in rated revenue and spend per visit across all age segments, with meaningful contributions from mid- and high-worth customers

  • INTERACTIVE SEGMENT IMPROVEMENT - Co said improved interactive segment profitability was driven by US iCasino revenue growth, efficient user acquisition, and higher revenue per user in Ontario


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Meet

$1.84 bln

$1.84 bln (16 Analysts)

Q3 EPS

$0.24

Q3 Net Income

$32.60 mln

Q3 Adjusted EBITDA

Miss

$284 mln

$439.89 mln (14 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the casinos & gaming peer group is "buy"

  • Wall Street's median 12-month price target for PENN Entertainment, Inc. is $25.00, about 43.3% above its November 4 closing price of $17.44

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Nov 3 - Red Rock Resorts Q3 revenue beats estimates on Las Vegas growth

  • Nov 4 - Melco Resorts Q3 revenue slips on weaker gaming

  • Nov 4 - Flutter pauses share buybacks to focus on cutting costs and debt


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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