PENN Entertainment (NASDAQ:PENN) Releases Earnings Results, Beats Expectations By $0.07 EPS

Key Points

• PENN Entertainment reported adjusted EPS of $0.44, beating estimates by $0.07, while revenue of $1.86 billion matched expectations and rose 5.2% year over year.
• Retail operations exceeded expectations, with record revenue and adjusted EBITDA, prompting the company to raise 2026 retail guidance to $5.87 billion in revenue and $1.963 billion in adjusted EBITDA.
• Management cited improving cash flow and deleveraging, but lowered interactive-revenue guidance because of weaker sportsbook volumes and customer-friendly outcomes; prediction-market competition remains an additional risk.

PENN Entertainment (NASDAQ:PENN - Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.37 by $0.07, FiscalAI reports. The company had revenue of $1.86 billion during the quarter, compared to the consensus estimate of $1.86 billion. PENN Entertainment had a positive return on equity of 2.93% and a negative net margin of 12.66%.The firm's revenue for the quarter was up 5.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($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 Stock Performance

PENN Entertainment stock traded up $0.05 during midday trading on Friday, hitting $20.18. The company's stock had a trading volume of 2,492,826 shares, compared to its average volume of 2,628,370. PENN Entertainment has a 1-year low of $11.65 and a 1-year high of $22.36. The company has a debt-to-equity ratio of 3.94, a current ratio of 0.82 and a quick ratio of 0.82. The company has a 50-day moving average price of $20.78 and a two-hundred day moving average price of $16.97. The company has a market cap of $2.70 billion, a price-to-earnings ratio of -3.17, a PEG ratio of 0.38 and a beta of 1.43.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Quarry LP acquired a new stake in PENN Entertainment during the fourth quarter worth approximately $36,000. Triumph Capital Management acquired a new position in PENN Entertainment in the 3rd quarter valued at $54,000. Kestra Advisory Services LLC acquired a new position in PENN Entertainment in the 4th quarter valued at $94,000. Advisory Services Network LLC bought a new stake in shares of PENN Entertainment during the 3rd quarter valued at $122,000. Finally, BTG Pactual Asset Management US LLC acquired a new stake in shares of PENN Entertainment during the 4th quarter worth $154,000. 91.69% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have commented on PENN. Barclays increased their price target on shares of PENN Entertainment from $24.00 to $26.00 and gave the company an "overweight" rating in a research note on Thursday, July 9th. Zacks Research raised shares of PENN Entertainment from a "hold" rating to a "strong-buy" rating in a report on Monday, July 13th. Jefferies Financial Group reiterated a "hold" rating and set a $22.00 target price on shares of PENN Entertainment in a research note on Friday. Susquehanna boosted their target price on PENN Entertainment from $24.00 to $28.00 and gave the stock a "positive" rating in a report on Wednesday, July 1st. Finally, Wells Fargo & Company reduced their price objective on shares of PENN Entertainment from $24.00 to $23.00 and set an "equal weight" rating for the company in a research report on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $23.35.

Key Headlines 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

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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