PENN Entertainment (NASDAQ:PENN) Announces Earnings Results

Key Points

• Q1 beat: PENN reported EPS of $0.11 vs. consensus $0.06 and revenue of $1.78 billion (+6.4% YoY), surprising the market and driving a strong share reaction.
• Mixed segment outlook: Retail showed material strength and management raised 2026 retail midpoints (≈+$20M revenue, +$12M adjusted EBITDA), while interactive improved YoY but theScore Bet’s Alberta launch is expected to create an incremental ~$20M adjusted EBITDA headwind in 2026 (largest hit in Q3).
• Stronger liquidity and capital discipline: PENN exited the quarter with about $1.7B total liquidity (≈$708M cash), issued $600M notes to pay revolver borrowings, trimmed 2026 CapEx to $420M, and targets significant deleveraging and >$3 of free cash flow per share by year‑end 2026.

PENN Entertainment (NASDAQ:PENN - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.05, FiscalAI reports. PENN Entertainment had a negative return on equity of 1.94% and a negative net margin of 12.11%.The business had revenue of $1.78 billion for the quarter, compared to analyst estimates of $1.74 billion. During the same period last year, the company earned $0.68 EPS. The firm's revenue was up 6.4% on a year-over-year basis.

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

• Retail strength and raised guidance: Q1 retail generated $1.4B of revenue and $471.4M adjusted EBITDA (33.2% margin), and management raised 2026 retail midpoints by $20M of revenue and $12M of adjusted EBITDA, driven by strong results at M Resort, Ameristar Black Hawk, St. Louis properties and Hollywood Joliet.
• Interactive segment improving: Interactive adjusted EBITDA improved by roughly $78M YoY in Q1 on ~15% iCasino growth, ~5% online sports betting growth, and materially reduced marketing spend under a refocused U.S. iCasino/Canada strategy, with Ontario trends especially encouraging.
• Alberta launch will pressure 2026 interactive results: theScore Bet’s Alberta launch (July 13) is expected to drive an incremental ~$20M adjusted EBITDA loss in 2026 — the sole reason interactive guidance moves to a ~$20M loss for the year — with Q3 being the largest quarterly hit before a profitable Q4.
• Stronger liquidity and deleveraging roadmap: PENN exited Q1 with $1.7B total liquidity (including $708M cash), issued $600M notes to pay revolver borrowings, refinanced credit facilities, and expects to reduce lease‑adjusted net leverage by ≥1 turn and traditional net leverage by ≥2 turns by year-end 2026 while targeting >$3 of free cash flow per share.
• CapEx discipline and project timing: 2026 CapEx guide trimmed to $420M (project CapEx $200M, maintenance $220M) with the Council Bluffs relocation pushed to 2028 (timing shift only), and expected GLPI funding (~$225M) for Hollywood Aurora in June, reflecting tighter capital allocation.

PENN Entertainment Stock Up 15.8%

PENN stock traded up $2.34 during mid-day trading on Thursday, reaching $17.11. The company had a trading volume of 5,931,995 shares, compared to its average volume of 4,353,692. The company has a debt-to-equity ratio of 3.92, a current ratio of 0.79 and a quick ratio of 0.79. The stock has a 50 day simple moving average of $14.38 and a two-hundred day simple moving average of $14.72. The company has a market capitalization of $2.28 billion, a price-to-earnings ratio of -2.83, a PEG ratio of 0.50 and a beta of 1.32. PENN Entertainment has a 52 week low of $11.65 and a 52 week high of $20.60.

Wall Street Analyst Weigh In

A number of analysts have recently commented on PENN shares. Jefferies Financial Group restated a "hold" rating and issued a $17.00 price target on shares of PENN Entertainment in a report on Wednesday, December 24th. Morgan Stanley boosted their price target on PENN Entertainment from $15.00 to $16.00 and gave the company an "equal weight" rating in a report on Wednesday, April 8th. Wall Street Zen upgraded PENN Entertainment from a "strong sell" rating to a "hold" rating in a report on Monday, March 2nd. Mizuho boosted their price target on PENN Entertainment from $19.00 to $22.00 and gave the company an "outperform" rating in a report on Thursday, March 12th. Finally, Canaccord Genuity Group cut their price target on PENN Entertainment from $26.00 to $21.00 and set a "buy" rating on the stock in a report on Tuesday, February 3rd. Eight analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $19.79.

Key PENN Entertainment News

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

• Positive Sentiment: Q1 earnings beat consensus — PENN reported $0.11 EPS vs. consensus of ~$0.05–$0.06, surprising the market and signaling an operational turnaround. PENN Entertainment (PENN) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Revenue beat and year-over-year growth — Quarterly revenue was about $1.78B vs. roughly $1.74B expected, up ~6.4% year-over-year, supporting the EPS beat and showing demand recovery. PENN Entertainment, Inc. Reports First Quarter Results
• Positive Sentiment: Higher visitation and spending at casinos drove the top-line — Company commentary and press coverage point to stronger foot traffic and per-visitor spend as the primary growth drivers. Penn Entertainment 1Q Sales Rise on Higher Visitation, Spending
• Neutral Sentiment: Analysts and company materials available — Slide deck and conference call materials were posted, and some analysts have updated models (consensus FY view cited in research). Investors can review the slides and call for details on segment trends and outlook. PENN Press Release / Slide Deck
• Negative Sentiment: Profitability and leverage remain concerns — Despite the beat, PENN reported a negative net margin and negative return on equity, and the company carries high leverage (debt/equity around 3.9), which could limit upside if cash flow softens. PENN Earnings Summary / Metrics
• Negative Sentiment: Mixed longer-term profitability — The company’s reported negative P/E and other valuation quirks mean investors should be cautious about extrapolating one quarter’s improvement into sustained earnings power without clearer guidance. Compared to Estimates, PENN Entertainment (PENN) Q1 Earnings: A Look at Key Metrics

Institutional Investors Weigh In On PENN Entertainment

Several large investors have recently made changes to their positions in the stock. Axxcess Wealth Management LLC increased its holdings in PENN Entertainment by 54.8% during the fourth quarter. Axxcess Wealth Management LLC now owns 55,075 shares of the company's stock worth $812,000 after buying an additional 19,500 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in PENN Entertainment by 328.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 52,814 shares of the company's stock valued at $779,000 after acquiring an additional 40,493 shares during the last quarter. XTX Topco Ltd grew its position in shares of PENN Entertainment by 59.6% in the 4th quarter. XTX Topco Ltd now owns 38,933 shares of the company's stock valued at $574,000 after acquiring an additional 14,534 shares during the period. Susquehanna Portfolio Strategies LLC increased its stake in shares of PENN Entertainment by 1,637.1% during the 4th quarter. Susquehanna Portfolio Strategies LLC now owns 194,365 shares of the company's stock worth $2,867,000 after purchasing an additional 183,176 shares during the last quarter. Finally, Engineers Gate Manager LP increased its stake in shares of PENN Entertainment by 1,255.7% during the 4th quarter. Engineers Gate Manager LP now owns 567,388 shares of the company's stock worth $8,369,000 after purchasing an additional 525,536 shares during the last quarter. Institutional investors and hedge funds own 91.69% of the company's stock.

PENN Entertainment Company Profile

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.

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