PENN Entertainment (NASDAQ:PENN) Posts Earnings Results, Beats Expectations By $0.15 EPS

PENN Entertainment (NASDAQ:PENN) posted its quarterly earnings data on Thursday. The company reported $0.32 EPS for the quarter, beating the consensus estimate of $0.17 by $0.15, FiscalAI reports. The firm had revenue of $1.84 billion during the quarter, compared to the consensus estimate of $1.84 billion. PENN Entertainment had a positive return on equity of 2.93% and a negative net margin of 12.66%. The firm’s revenue was up 7.1% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.22) EPS.

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

• PENN reported record third-quarter revenue, with retail revenue of $1.5 billion and Adjusted EBITDA of $502 million. Same-store revenue and EBITDA grew about 1% and 5%, respectively, margins improved, and the company raised its 2026 retail guidance.
• Recent development projects are contributing to growth: M Resort, Hollywood Columbus and Aurora delivered strong results, with hotel guests extending PENN’s reach beyond local markets. Management said all four completed projects should continue to ramp, while Council Bluffs and New Orleans are in the pipeline.
• Interactive Adjusted EBITDA was a loss of $18.3 million in Q3, including investment in Alberta, but margins improved and results excluding the launch investment improved sequentially. PENN expects Q4 interactive EBITDA of $18.7 million and says the business will be profitable for full-year 2027; U.S. sports betting and integrated iCasino trends remain softer.
• PENN ended the quarter with $2 billion of liquidity and said it is continuing to reduce leverage. Management’s capital priorities remain deleveraging and investing in internal growth projects, with share repurchases under consideration for 2027 and M&A a lower priority.

PENN Entertainment Price Performance

Shares of PENN Entertainment stock traded up $0.09 during midday trading on Friday, hitting $17.43. 4,343,204 shares of the company were exchanged, compared to its average volume of 2,922,435. The firm has a 50 day simple moving average of $16.01 and a 200-day simple moving average of $16.86. PENN Entertainment has a 52 week low of $11.65 and a 52 week high of $22.36. The firm has a market cap of $2.34 billion, a P/E ratio of -193.65, a PEG ratio of 0.44 and a beta of 1.40. The company has a debt-to-equity ratio of 3.79, a current ratio of 0.89 and a quick ratio of 0.89.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on PENN. Deutsche Bank Aktiengesellschaft upgraded shares of PENN Entertainment from a “hold” rating to a “buy” rating and upped their target price for the company from $23.00 to $25.00 in a report on Tuesday, October 6th. Mizuho set a $28.00 price target on shares of PENN Entertainment in a research report on Friday, August 7th. Piper Sandler raised PENN Entertainment from a “neutral” rating to a “buy” rating and set a $26.00 price target on the stock in a report on Tuesday, October 13th. JPMorgan Chase & Co. lowered their price objective on shares of PENN Entertainment from $27.00 to $24.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 20th. Finally, Wells Fargo & Company raised their price objective on shares of PENN Entertainment from $22.00 to $23.00 and gave the stock an “equal weight” rating in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $23.56.

More PENN Entertainment News

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

• Positive Sentiment: PENN reported third-quarter adjusted earnings of $0.32 per share, above analysts’ estimates, while revenue of $1.84 billion was roughly in line and increased 7.1% year over year. The company swung to a profit from a loss in the year-ago quarter. PENN Entertainment reports third-quarter results
• Positive Sentiment: Reports highlighted growth from U.S. iCasino and Canada, alongside improved revenue and adjusted EBITDA. The second tower at M Resort is also continuing to contribute to revenue. These trends support the case for continued digital and property-level growth. U.S. iCasino and Canada drive growth
• Positive Sentiment: Wells Fargo raised its price target to $23 from $22, while keeping an “equal weight” rating. The higher target is supportive, though the unchanged rating signals a neutral analyst stance. Wells Fargo rating and price-target update
• Neutral Sentiment: PENN is reportedly not prioritizing acquisitions, suggesting management is focusing on its existing business rather than pursuing deals. The impact depends on execution and the returns from organic growth. PENN is not prioritizing acquisitions
• Neutral Sentiment: A renewed push for gambling in Texas may follow the midterm elections, but this remains a potential future opportunity rather than an immediate revenue driver. Texas gambling push after the midterm elections
• Negative Sentiment: Gaming-sector sentiment was pressured by DraftKings’ sharp decline after its outlook disappointed investors, with coverage also reporting declines for PENN and other operators. Concerns about competition and spending on prediction markets could weigh on perceptions of the broader online betting industry. Gaming stocks fall amid DraftKings outlook concerns

PENN Entertainment Company Profile

PENN Entertainment, Inc is a North American provider of integrated entertainment, gaming and sports betting. The company operates casinos, racetracks and video gaming terminals, offering slot machines, table games, poker, sports wagering, hotel accommodations, restaurants, entertainment venues and other amenities.

PENN’s portfolio includes regional gaming properties operating under brands such as Hollywood Casino, Ameristar, L’Auberge and M Resort. Its land-based operations serve customers across numerous U.S.