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

Key Points

• PENN reported EPS of $0.32, beating the $0.17 consensus estimate by $0.15. Revenue was $1.84 billion, in line with estimates and up 7.1% year over year.
• The company cited record third-quarter revenue, including $1.5 billion in retail revenue and $502 million in Adjusted EBITDA, and raised its 2026 retail guidance. Recent property projects, including M Resort, Hollywood Columbus and Aurora, are contributing to growth.
• Interactive operations posted an $18.3 million Adjusted EBITDA loss, partly reflecting investment in Alberta; PENN expects $18.7 million in interactive EBITDA in Q4 and targets full-year profitability in 2027. Management is focused on reducing leverage and investing in existing growth projects.

PENN Entertainment (NASDAQ:PENN - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.15, FiscalAI reports. PENN Entertainment had a negative net margin of 12.66% and a positive return on equity of 2.93%. The firm had revenue of $1.84 billion during the quarter, compared to analyst estimates of $1.84 billion. During the same quarter in the prior year, the business posted ($0.22) earnings per share. The company's quarterly revenue was up 7.1% compared to the same quarter last year.

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 Stock Performance

Shares of PENN 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. PENN Entertainment has a 52 week low of $11.65 and a 52 week high of $22.36. The firm has a market capitalization of $2.34 billion, a P/E ratio of 42.55, a PEG ratio of 0.44 and a beta of 1.40. The firm's 50 day moving average price is $16.01 and its two-hundred day moving average price is $16.86. The company has a debt-to-equity ratio of 3.79, a quick ratio of 0.89 and a current ratio of 0.89.

Analysts Set New Price Targets

A number of brokerages have weighed in on PENN. Susquehanna dropped their target price on shares of PENN Entertainment from $30.00 to $26.00 and set a "positive" rating for the company in a research note on Monday, October 19th. Weiss Ratings restated a "sell (d-)" rating on shares of PENN Entertainment in a report on Monday, September 21st. Piper Sandler raised shares of PENN Entertainment from a "neutral" rating to a "buy" rating and set a $26.00 price target for the company in a report on Tuesday, October 13th. Citigroup reissued a "market outperform" rating on shares of PENN Entertainment in a research note on Tuesday, October 13th. Finally, Needham & Company LLC reissued a "hold" rating on shares of PENN Entertainment in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $23.56.

Trending Headlines about PENN Entertainment

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

About PENN Entertainment

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.