PENN Entertainment (NASDAQ:PENN) Releases Earnings Results

PENN Entertainment (NASDAQ:PENN) issued its earnings results on Thursday. The company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.37 by $0.07, FiscalAI reports. PENN Entertainment had a negative net margin of 12.66% and a positive return on equity of 2.93%. The company had revenue of $1.86 billion for the quarter, compared to analysts’ expectations of $1.86 billion. During the same period in the prior year, the company earned ($0.12) earnings per share. The firm’s revenue was up 5.2% compared to the same quarter last year.

Here are the key takeaways from PENN Entertainment’s conference call:

• Retail performance exceeded expectations, with record second-quarter revenue of $1.5 billion and adjusted EBITDA of $517.2 million, up approximately 4% and 6% year over year, respectively. Nine properties set quarterly revenue and EBITDA records.
• PENN raised its 2026 retail guidance to midpoint revenue of $5.87 billion and adjusted EBITDA of $1.963 billion, supported by expected mid-single-digit EBITDA growth and roughly 50 basis points of margin expansion in the second half.
• The company continues to improve cash flow and reduce leverage, helped by higher retail EBITDA, lower projected project CapEx, debt refinancings, and repayment of its remaining $106.7 million convertible notes. Management is targeting lease-adjusted net leverage below five times and traditional net leverage below two times.
• Interactive revenue guidance was reduced to $1.57 billion from $1.6 billion after customer-friendly sportsbook outcomes and lower volumes, although adjusted EBITDA improvement continued and the full-year loss target remains $20 million. Management expects the segment’s third-quarter loss to be its largest of the year, with profitability in the fourth quarter.
• Recently completed retail projects, including Hollywood Columbus, Hollywood Aurora, Joliet, and M Resort, are showing strong early demand, higher-value customer engagement, and revenue growth. PENN is also evaluating additional hotel and water-to-land projects, though management said these must compete with deleveraging, share repurchases, and other capital-allocation priorities.

PENN Entertainment Stock Performance

Shares of PENN traded up $0.05 during mid-day trading on Friday, reaching $20.18. 2,492,826 shares of the company’s stock traded hands, compared to its average volume of 2,628,370. The company has a debt-to-equity ratio of 3.94, a quick ratio of 0.82 and a current ratio of 0.82. The business’s 50-day moving average price is $20.78 and its 200-day moving average price is $16.97. The stock has a market capitalization of $2.70 billion, a P/E ratio of -3.17, a price-to-earnings-growth ratio of 0.38 and a beta of 1.43. PENN Entertainment has a 12 month low of $11.65 and a 12 month high of $22.36.

More PENN Entertainment News

Here are the key news stories impacting PENN Entertainment this week:

• Positive Sentiment: Benchmark raises rating and price target: Benchmark Co. lifted its price target from $21 to $22 and upgraded PENN to “Buy,” implying further upside from recent trading levels. Benzinga analyst rating report
• Positive Sentiment: Quarterly earnings beat expectations: PENN reported second-quarter adjusted earnings of $0.44 per share, ahead of estimates ranging from $0.35 to $0.37 and well above the prior-year result. Revenue of $1.86 billion was in line with expectations but increased 5.2% year over year. PENN tops Q2 earnings and revenue estimates
• Positive Sentiment: Improved outlook: Management is targeting more than 20% growth in 2026 adjusted EBITDAR and raised its retail revenue guidance to $5.87 billion, signaling confidence in casino demand and operating performance. PENN raises 2026 guidance
• Positive Sentiment: Broad-based casino demand: Reports characterized the quarter as showing improved profits and resilient demand across PENN’s casino operations. The company was also included in Zacks’ Rank #1 “Strong Buy” growth-stock list. Improved profits amid casino demand
• Neutral Sentiment: Revenue was merely in line: Although earnings exceeded forecasts, quarterly sales matched consensus estimates, limiting the size of the positive surprise. PENN sales in line with estimates
• Negative Sentiment: Prediction-market competition is a risk: PENN expects an “arms race” in prediction markets this fall while maintaining its current strategy, potentially increasing marketing costs and competitive pressure. PENN prediction-market competition

Institutional Trading of PENN Entertainment

Several hedge funds have recently added to or reduced their stakes in the business. Quarry LP acquired a new position in shares of PENN Entertainment during the 4th quarter valued at $36,000. Triumph Capital Management acquired a new position in PENN Entertainment during the third quarter worth about $54,000. Kestra Advisory Services LLC bought a new stake in PENN Entertainment in the fourth quarter worth about $94,000. Advisory Services Network LLC bought a new stake in PENN Entertainment in the third quarter worth about $122,000. Finally, BTG Pactual Asset Management US LLC acquired a new stake in PENN Entertainment in the 4th quarter valued at about $154,000. Institutional investors own 91.69% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. Citigroup raised shares of PENN Entertainment from a “hold” rating to an “overweight” rating in a research report on Thursday, July 23rd. The Goldman Sachs Group started coverage on shares of PENN Entertainment in a report on Friday, June 26th. They issued a “buy” rating and a $26.00 target price on the stock. Morgan Stanley lifted their target price on PENN Entertainment from $16.00 to $17.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 6th. Mizuho set a $28.00 target price on PENN Entertainment in a report on Friday. Finally, Capital One Financial upgraded PENN Entertainment from an “equal weight” rating to an “overweight” rating and set a $26.00 price target on the stock in a research report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $23.35.

About PENN Entertainment

PENN Entertainment, Inc (NASDAQ: PENN) is a leading operator of gaming and racing facilities in the United States. The company’s business activities encompass land-based casinos, pari-mutuel racetracks, off-track wagering, and ancillary amenities such as hotels, restaurants and entertainment venues. In August 2022, the company rebranded from Penn National Gaming to PENN Entertainment to reflect its expanding footprint across digital and traditional segments of the gaming industry.

The company’s portfolio includes well-known properties under the Hollywood Casino and Ameristar Casino brands, located across multiple states including Pennsylvania, Ohio, Missouri and West Virginia.