PENN Entertainment's (PENN) Q4 Earnings: What's in Store?
PENN Entertainment, Inc. PENN is scheduled to report fourth-quarter 2022 results on Feb 2, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 89.5%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 33 cents per share, indicating growth of 26.9% year over year. The Zacks Consensus Estimate for revenues is pegged at $1.6 billion, suggesting an improvement of 0.9% from the year-ago quarter.
Factors to Note
PENN’s fourth-quarter results are likely to reflect sturdy contribution from online and retail Barstool Sportsbooks and iCasino offerings. Enhanced vaccinations continue to benefit the gaming industry. We expect gaming, food and beverage as well as hotel revenues to increase 2.5%, 21.5% and 13.4% year over year to $1,334.2 million, $110.7 million and $70.2 million, respectively.
The company may have witnessed solid segmental performance in the fourth quarter. We expect Northeast, South, West and Midwest segments’ revenues to increase 8.5%, 3.1%, 8.8% and 6.3% year over year to $712.6 million, $350.5 million, $150.8 million and $350.6 million, respectively.
However, increase in operating expenses is likely to have affected profitability in the quarter. We expect adjusted EBITDAR margin to decline 29.4% in fourth-quarter 2022 from 30.6% reported in the prior-year quarter.
PENN Entertainment, Inc. Price and EPS Surprise
PENN Entertainment, Inc. price-eps-surprise | PENN Entertainment, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for PENN Entertainment this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: PENN Entertainment has an Earnings ESP of +3.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #4 (Sell).
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to beat estimates this time around.
Red Rock Resorts, Inc. RRR has an Earnings ESP of +17.33% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of the company have gained 0.7% in the past year. RRR’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 66.7%.
Crocs, Inc. CROX has an Earnings ESP of +1.79% and a Zacks Rank #3.
Shares of the company have gained 18.2% in the past year. CROX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 18.2%.
Planet Fitness, Inc. PLNT has an Earnings ESP of +1.30% and a Zacks Rank #3.
Shares of the company have declined 7.1% in the past year. PLNT’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Crocs, Inc. (CROX) : Free Stock Analysis Report
PENN Entertainment, Inc. (PENN) : Free Stock Analysis Report
Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report
Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report
