PENN Entertainment (NASDAQ:PENN) Announces Earnings Results

PENN Entertainment (NASDAQ:PENN) released its earnings results on Thursday. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.37 by $0.07, FiscalAI reports. The firm had revenue of $1.86 billion for the quarter, compared to analyst estimates of $1.86 billion. PENN Entertainment had a negative net margin of 12.66% and a positive return on equity of 2.93%. The business’s quarterly revenue was up 5.2% compared to the same quarter last year. During the same period last year, the firm earned ($0.12) EPS.

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 Trading Up 0.2%

Shares of PENN Entertainment stock traded up $0.05 on Friday, hitting $20.18. The stock had a trading volume of 2,492,826 shares, compared to its average volume of 2,628,370. The stock has a 50 day moving average of $20.78 and a 200 day moving average of $16.97. The firm has a market capitalization of $2.70 billion, a P/E ratio of -3.17, a PEG ratio of 0.38 and a beta of 1.43. PENN Entertainment has a twelve month low of $11.65 and a twelve month high of $22.36. The company has a debt-to-equity ratio of 3.94, a quick ratio of 0.82 and a current ratio of 0.82.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Morgan Stanley upped their price target on shares of PENN Entertainment from $16.00 to $17.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Zacks Research upgraded shares of PENN Entertainment from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 13th. JPMorgan Chase & Co. upped their target price on PENN Entertainment from $23.00 to $26.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 15th. Citizens Jmp raised their target price on PENN Entertainment from $24.00 to $26.00 and gave the company a “market outperform” rating in a report on Thursday, July 16th. Finally, Wells Fargo & Company decreased their price target on PENN Entertainment from $24.00 to $23.00 and set an “equal weight” rating on the stock in a research note on Tuesday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $23.35.

Key Stories Impacting PENN Entertainment

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 Investors Weigh In On PENN Entertainment

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Caxton Associates LLP bought a new stake in PENN Entertainment in the first quarter valued at approximately $246,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in PENN Entertainment by 30.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 344,565 shares of the company’s stock worth $5,620,000 after purchasing an additional 79,978 shares during the last quarter. Russell Investments Group Ltd. lifted its position in shares of PENN Entertainment by 6.7% in the 2nd quarter. Russell Investments Group Ltd. now owns 64,280 shares of the company’s stock worth $1,150,000 after purchasing an additional 4,011 shares during the period. First Trust Advisors LP lifted its position in shares of PENN Entertainment by 169.6% in the 2nd quarter. First Trust Advisors LP now owns 94,575 shares of the company’s stock worth $1,690,000 after purchasing an additional 59,489 shares during the period. Finally, Marshall Wace LLP boosted its stake in shares of PENN Entertainment by 80.2% in the 2nd quarter. Marshall Wace LLP now owns 386,871 shares of the company’s stock valued at $6,913,000 after purchasing an additional 172,158 shares during the last quarter. Institutional investors and hedge funds own 91.69% of the company’s stock.

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.