PENN Entertainment Q3 revenue meets estimates, adjusted EBITDA misses

PENN Entertainment

Thu 12:20

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: ID:nBw73N13Ca

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

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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.)