We previously covered PENN Entertainment (NASDAQ: PENN ) in May 2024, discussing how it had underperformed expectations with the stock declining by -32%, well behind the wider market at +20% since theI am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a ...

PENN Entertainment, Inc. (PENN) reported fourth-quarter 2024 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.PENN's fourth-quarter property-level operating results demonstrated strong performance, with properties unaffected by new competition. Despite widely recognized and customer-favorable sports betting outcomes during the quarter, the Interactiv ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 PENN Entertainment, Inc. (Exact name of registrant as specified in its charter) Pennsylvania 23-2234473 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file ...

FOURTH QUARTER 2024 EARNINGS PRESENTATION February 27, 2025 FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "expects," "believes," "estimates," "projects," "intends," "plans," "goal," "seeks," "may," "will," "should," or "anticipates" or the negative or other variations of these or similar words, or by discussions ...

Financial Data and Key Metrics Changes - For Q4 2024, PENN Entertainment reported retail revenue of $1.4 billion and adjusted EBITDA of $461 million, both slightly above the high end of previously guided ranges [25][29] - The interactive segment had adjusted revenues of $142 million, with an adjusted EBITDA loss of $109.8 million, impacted by customer-friendly sports betting results [26][29] - Total liquidity at the end of Q4 was $1.7 billion, including $707 million in cash and cash equivalents [28] Business Line Data and Key Metrics Changes - The retail segment showed steady increases in demand throughout Q4, contributing to a strong finish for the year [25] - The interactive segment faced challenges, with a $44 million negative impact on revenues and a $32 million impact on EBITDA due to sports betting results [26] - The company anticipates a year-over-year EBITDA improvement of approximately $350 million in the digital segment for 2025 [23][33] Market Data and Key Metrics Changes - The theoretical growth from guests across Louisiana properties increased by 9% year-over-year, while overall growth across all properties was up by 5% [27] - The company expects to see improvements in market share as it moves through 2025, particularly in the sports betting and iCasino segments [48][81] Company Strategy and Development Direction - PENN Entertainment plans to repurchase at least $350 million of shares in 2025, reflecting confidence in its digital and retail outlook [6][40] - The company is focused on an omnichannel strategy to attract a younger audience and enhance cross-selling opportunities between online and retail [18][20] - Four retail growth projects are currently under construction, with expectations for attractive returns [9][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for a multiyear growth phase, with no significant new competitive supply anticipated in 2025 or 2026 [10][30] - The management team highlighted the importance of optimizing spending and resources in partnership with ESPN to improve results in the digital segment [16][17] - The company expects to approach break-even in the digital segment by 2025, with profitability anticipated in 2026 [22][24] Other Important Information - Total CapEx for 2025 is expected to be $730 million, including $490 million for project CapEx [38] - The company plans to continue its deleveraging trajectory throughout 2025, exiting covenant relief as planned [29] Q&A Session Summary Question: Thoughts on Illinois projects and financing timing - Management indicated that financing for the Illinois projects would likely occur close to opening to avoid incurring rent before generating EBITDA [45] Question: OSB business expectations for 2025 - Management expects improvements in market share throughout 2025, with operational levers available if targets are not met [48][52] Question: Ramp-up of land-based renovation projects - Management anticipates a quick ramp-up for new properties due to existing staff and strong databases [62] Question: Risks of gaming tax increases - Management emphasized the importance of engaging with states to find solutions rather than facing unexpected tax increases [66][74] Question: Market share assumptions for ESPN and iGaming - Management noted early progress in market share for iGaming, with expectations for continued growth [79][81] Question: Impact of ESPN-branded sportsbooks on customer signups - Management reported significant account signups and cross-play from properties during the Super Bowl [137]

Core Insights - PENN Entertainment reported $1.67 billion in revenue for the quarter ended December 2024, marking a year-over-year increase of 19.6% [1] - The EPS for the same period was -$0.44, an improvement from -$1.75 a year ago, but below the consensus estimate of -$0.41, resulting in an EPS surprise of -7.32% [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $1.68 billion, with a surprise of -0.67% [1] Revenue Performance by Segment - Northeast segment revenue was $689.90 million, exceeding the average estimate of $677.80 million, reflecting a year-over-year increase of 4.1% [4] - South segment revenue was $284.20 million, slightly above the average estimate of $283.65 million, showing a year-over-year decrease of 0.3% [4] - West segment revenue was $129.40 million, slightly below the average estimate of $129.75 million, indicating a year-over-year decrease of 3.2% [4] - Midwest segment revenue was $290.70 million, close to the average estimate of $291.50 million, with no change year-over-year [4] - Interactive segment revenue was $275 million, significantly below the average estimate of $303.41 million, but showing a remarkable year-over-year increase of 773% [4] - Other segment revenue was $3.70 million, slightly below the estimated $4 million, with no change compared to the year-ago quarter [4] - Intersegment eliminations reported -$3.90 million, better than the estimated -$8.55 million, with a year-over-year change of -67.8% [4] Stock Performance - Shares of PENN Entertainment have returned -1.8% over the past month, compared to the Zacks S&P 500 composite's -2.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - PENN Entertainment reported a quarterly loss of $0.44 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.41, but an improvement from a loss of $1.75 per share a year ago [1] - The company posted revenues of $1.67 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.67%, compared to revenues of $1.4 billion a year ago [2] - Over the last four quarters, PENN Entertainment has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Outlook - The immediate price movement of PENN Entertainment's stock will depend on management's commentary during the earnings call and future earnings expectations [3] - The stock has gained about 3% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the coming quarter is $0.02 on revenues of $1.76 billion, and for the current fiscal year, it is $0.43 on revenues of $6.97 billion [7] Industry Context - The Gaming industry, to which PENN Entertainment belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact PENN Entertainment's stock performance [5][6]

PENN Entertainment, Inc. Reports Fourth Quarter Results Company to Repurchase at Least $350 Million of Shares in 2025 Exhibit 99.1 WYOMISSING, PA (February 27, 2025) - PENN Entertainment, Inc. ("PENN" or the "Company") (Nasdaq: PENN) today reported financial results for the quarter and year ended December 31, 2024. Jay Snowden, Chief Executive Officer and President, said: "PENN's fourth quarter property-level operating results reflect solid performance, as properties not impacted by new supply generated nea ...

Core Viewpoint - The market anticipates that PENN Entertainment will report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended December 2024 [1] Earnings Expectations - PENN Entertainment is expected to post a quarterly loss of $0.41 per share, reflecting a year-over-year change of +76.6% [3] - Revenues are projected to reach $1.69 billion, representing a 20.8% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 50% higher in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for PENN is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -7.49% [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [7][8] - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced a positive surprise nearly 70% of the time [8] Historical Performance - In the last reported quarter, PENN was expected to post a loss of $0.28 per share but actually reported a loss of $0.24, resulting in a surprise of +14.29% [12] - Over the past four quarters, PENN has beaten consensus EPS estimates two times [13] Conclusion - PENN Entertainment does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when evaluating the stock ahead of its earnings release [16]

Group 1 - Casino stocks, particularly PENN Entertainment, have faced significant challenges compared to competitors since 2021 [1] - PENN stock has not performed well, indicating a more severe downturn than other publicly traded casino companies [1]