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Shares of casino name PENN Entertainment Inc (NASDAQ:PENN) are enjoying a 9% pop this morning, trading at $19.20, the stock's highest level since early March.
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
PENN's online sports betting efforts, especially ESPN Bets, have underperformed due to poor user experience and unsustainable promo-driven growth. Increased competition is pressuring both PENN's interactive and brick-and-mortar segments, leading to negative growth, accompanied by potential macroeconomic headwinds. My valuation suggests a fair value of $14.03; however, there is over 40% upside to be realized contingent on PENN divesting from its interactive segment.
We rate PENN Entertainment Strong Buy with a $43 PT, driven by above-consensus FY25 revenue and undervalued growth in iCasino and Canada. Strategic retrenchment from ESPN BET in FY26 will moderate revenue growth but drive margin expansion and higher-quality earnings. Retail market share gains and new property openings anchor cash generation, supporting both digital investment and shareholder returns.
PENN Entertainment's first-quarter results reflect steady recovery in gaming and strong growth in its Interactive segment.
PENN Entertainment, Inc. (NASDAQ:PENN ) Q1 2025 Earnings Conference Call May 8, 2025 9:00 AM ET Company Participants Joe Jaffoni - IR Jay Snowden - CEO and President Felicia Hendrix - CFO Todd George - Head, Operations Aaron LaBerge - CTO and Head of Interactive Conference Call Participants Brandt Montour - Barclays Carlo Santarelli - Deutsche Bank Shaun Kelley - Bank of America Barry Jonas - Truist Securities Joe Stauff - Susquehanna Chad Beynon - Macquarie Ben Chaiken - Mizuho Bernie McTernan - Needham Jordan Bender - Citizens Ryan Sigdahl - Craig-Hallum John DeCree - CRB Jeff Zuo - Stifel Operator Greetings, and welcome to PENN Entertainment First Quarter 2025 Earnings Call. I would now like to turn the conference over to Joe Jaffoni, Investor Relations.
While the top- and bottom-line numbers for PENN Entertainment (PENN) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
PENN Entertainment (PENN) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $0.29. This compares to loss of $0.79 per share a year ago.
Beyond analysts' top -and-bottom-line estimates for PENN Entertainment (PENN), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
PENN Entertainment (PENN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
PENN's minimal growth profile and yet to bear fruit ESPN Bet have naturally triggered the great pessimism observed in its stock prices and valuations. This is significantly worsened by the mixed near-term prospects, Interactive segment's ongoing cash burn, and the deteriorating balance sheet. On the other hand, while PENN has yet to offer any forward guidance, the consensus forward estimates appear to be rather promising, marking a potential reversal ahead.