PENN Earnings Prediction
The chart below shows how PENN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PENN sees a +0.67% change in stock price 10 days leading up to the earnings, and a +1.16% change 10 days following the report. On the earnings day itself, the stock moves by -1.92%. This data can give you a slight idea of what to expect for the next quarter's release.
PENN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.67B
19.61%
1.82%
Gross Margin
26.32%
78.32%
-6.20%
Operating Margin
2.88%
128.24%
-29.93%
Net Margin
-8.02%
-68.81%
250.22%
EPS
-0.88
-62.71%
266.67%
No Data Available
PENN Earnings Analysis
PENN Entertainment Inc Corporation (PENN.O) Earnings Conference Call
Positive
Share Repurchase Announcement: PENN Entertainment announced a share repurchase of at least $350 million for 2025, indicating confidence in future growth.
Market Share Expansion: The retail business is consistently growing market share in regional markets, supported by strong operations and gaming tax-adjusted margins.
Retail Growth Projects: Four retail growth projects are currently under construction, expected to generate attractive returns, with one opening in Joliet, Illinois, in Q4 2025.
Market Positioning Advantage: No significant new competitive supply is anticipated in 2025 or 2026, positioning PENN favorably in the market.
Canadian Market Performance: The Score and Score BET are performing well in Canada, with Ontario being the top market for revenues and gross profit.
iCasino Launch Success: The standalone Hollywood iCasino products launched in Pennsylvania and Michigan are showing promising early results, with plans for further launches in 2025.
ESPN BET Optimization Strategy: ESPN BET is gaining traction, with a focus on optimizing spend and resources to improve results in 2025.
Digital Database Expansion: The digital database has grown significantly, with 4 million new members, enhancing cross-sell opportunities and attracting a younger audience.
Digital Segment Break-even Projection: PENN expects to approach break-even in the digital segment in 2025, with a projected year-over-year EBITDA improvement of $350 million.
Q4 Retail Performance: Retail revenue for Q4 2024 was $1.4 billion, with adjusted EBITDA of $461 million, exceeding previous guidance.
Liquidity and De-leveraging Update: The company ended Q4 with total liquidity of $1.7 billion and de-levered by 1.3 turns, allowing for capital return to shareholders.
Retail Revenue and EBITDA Guidance: 2025 retail revenue guidance is set between $5.6 billion to $5.75 billion, with EBITDA guidance of $1.85 billion to $1.95 billion.
Negative
Interactive Segment Loss: Interactive segment reported a loss of $109.8 million in adjusted EBITDA for Q4 2024, indicating ongoing financial struggles in this area.
Sports Betting Market Challenges: Customer-friendly sports betting results negatively impacted interactive adjusted revenues by $44 million and adjusted EBITDA by $32 million, highlighting challenges in the sports betting market.
Interactive Segment Losses: Despite expectations for improvement, the interactive segment is still projected to incur significant losses in 2025, with EBITDA guidance indicating a loss of $200 million to $100 million.
Digital Segment Profitability Challenges: The company has not yet achieved profitability in its digital segment, which was a key goal, and anticipates only approaching break-even in 2025.
Operational Disruption Risk: The anticipated two to three-week closure of the Joliet property for transition could disrupt operations and revenue during that period.
Market Competition Impact: The company is facing competition from new supply in certain markets, such as Council Bluffs, Chicagoland, and Louisiana, which could impact market share and revenue growth.
PENN FAQs
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PENN Earning Call Sentiment
PENN Entertainment, Inc. (PENN) Q4 2024 Earnings Call Transcript
PENN.O
-3.49%Positive
The earnings call presents a mixed outlook: strong retail revenue and EBITDA, optimistic guidance, and a significant share repurchase program are positive. However, the digital segment's ongoing losses, potential delays in growth projects, and economic sensitivity are concerns. The Q&A reveals management's reluctance to provide specifics on financing and tax impacts, adding uncertainty. Given the market cap and these mixed signals, the stock is likely to remain stable, resulting in a neutral prediction.
