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PENN Entertainment (PENN) Second Quarter Earnings Lag Estimates, Y/Y Fall

PENN Entertainment Co., Ltd. PENN had mixed results in the second quarter of 2022, with earnings below and above Zacks Consensus estimates. The top line was up year-on-year, but the bottom line was down year-on-year. Following this result, the company’s stock fell 4% during his August 5 trading hours.

Earnings and Earnings Discussion

In the quarter under review, the company reported adjusted earnings per share (EPS) of 15 cents, a whopping 70.6% below the Sachs Consensus estimate of 51 cents. Adjusted EPS for the year-ago quarter was $1.17.

Total revenue for the second quarter was $1,626.9 million, 1.9% higher than the Zachs consensus forecast of $1,597 million. His top line increased by 5.2% year-on-year. The rise was supported by strong retail business, improved visits and new interactive products.

Penn National Gaming, Inc. Pricing, Consensus and EPS Surprise

Penn National Gaming, Inc. Pricing, Consensus and EPS Surprise

Penn National Gaming, Inc. Price Consensus-eps-Surprise Charts | Penn National Gaming, Inc. Quotes

During the quarter, the Northeast segment posted revenue of $684.9 million, up 5% year-over-year. West, Midwest, Interactive and Other segment revenues increased 9.5%, 0.5%, 61.4% and 247.1% year over year to $153.8 million, $296.3 million, $154.9 million and $5.9 million, respectively was a dollar. However, South segment revenue was $338.6 million, down 8% year-over-year.
operating headlines

Adjusted EBITDAR decreased 14% from the prior-year period to $504.5 million. The adjusted EBITDAR margin decreased 694 basis points year-over-year to 31%.

Other financial information

As of June 30, 2022, the Company’s cash and cash equivalents were $1,708.3 million, compared with $1,805.5 million as of March 31, 2022. .

During the second quarter, the company repurchased 5,539,177 shares of common stock valued at approximately $167 million. The company said he had $313.1 million available in a $750 million repurchase program.

2022 Guidance

The company expects 2022 net revenue to be between $6.15 billion and $6.55 billion. His 2022 adjusted EBITDAR is expected to range from $1.9 billion to $2.0 billion.

Zack Rank & Key Pick

PENN Entertainment currently holds Zacks Rank 3 (hold).you can see See the full list of today’s #1 (strong buy) Zachs stocks here.

The top-ranked stocks in the consumer discretionary sector are: G-III Apparel Group Co., Ltd. GIII, Marriott International Inc. (March) When Choice Hotels International, Inc. CHH.

G-III Apparel ranks #1 in the Zacks Rank. GIII underperformed Q4 guidance by 97.5% on average. The stock has fallen 23.5% over the past year.

GIII’s Zacks consensus forecasts for revenue and EPS for the current fiscal year show increases of 13.8% and 8.2%, respectively, from reported levels in the same period last year.

Marriott has Zack Rank #2. On average, he expects earnings in the fourth quarter of March to be 1.4%. The stock has risen 12.2% over the past year.

Zacks consensus forecasts for sales and EPS for the current fiscal year in March show growth of 46.1% and 99.4%, respectively, from reported levels in the same period last year.

Choice Hotels is ranked 2nd in the Zachs ranking. CHH’s Q4 earnings forecast averages 11.2%. The stock has fallen 4.4% over the past year.

CHH’s Zacks consensus forecasts for revenue and EPS for the current fiscal year show growth of 13.6% and 17.7%, respectively, from the levels reported in the same period last year.

Sachs Names ‘Best Single-to-Double Pick’

Out of thousands of stocks, each of our five Zachs experts picked their favorites to surge +100% or more in the coming months. Out of these five, Research Director Sheraz Mian hand-picked his one to give you the most explosive advantage.

A little-known chemical company, up 65% from last year, but still cheap. With relentless demand, his skyrocketing earnings forecast for 2022, and a $1.5 billion stock buyback, retail investors are ready to jump in.

The company rivals other recent Zacks stock doublings as Boston Beer Company surges +143.0% in just over nine months and NVIDIA surges +175.9% in a year. or may exceed it.

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Marriott International, Inc. (MAR): Complimentary Inventory Analysis Report

Choice Hotels International, Inc. (CHH): Complimentary Inventory Analysis Report

GIII Apparel Group Inc. (GIII): Free Stock Analysis Report

Penn Entertainment Inc. (PENN): Free Stock Analysis Report

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The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.