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]

Company Performance and Governance Issues - PENN's shares have declined by 81% over the past four years, significantly underperforming the S&P 500 Index (+69%) and Boyd Gaming (+73%) [2] - The Board has overseen a failed Interactive strategy, resulting in nearly $4 billion in reckless spending on overpriced M&A transactions and media partnerships, leading to large ongoing operating losses [3] - Weak corporate governance has disenfranchised shareholders and entrenched board members while excessively compensating the CEO [4] Proposed Board Changes - HG Vora has nominated three independent director candidates (William J Clifford, Johnny Hartnett, Carlos Ruisanchez) to PENN's Board at the 2025 Annual Meeting [1] - This marks the first time in HG Vora's 15-year history that it has nominated directors, reflecting the urgency for change [5] Director Nominees' Qualifications - William J Clifford has over 30 years of gaming industry experience, including 12 years as CFO of Penn National Gaming, driving a 20x return for shareholders [6] - Johnny Hartnett has decades of online sports betting and gaming experience, including growing Superbet Group's revenue 7x and profitability 5x during his tenure as CEO [6][7] - Carlos Ruisanchez has a strong track record in capital allocation and value creation, including driving a nearly 5x total return for Pinnacle Entertainment shareholders during his tenure as CFO [7] Shareholder Position - HG Vora collectively owns approximately 4 8% of PENN's outstanding shares through its Master Fund and Downriver entities [11]

Core Insights - PENN Entertainment's subsidiary, PENN Sports Interactive, has formed a long-term multi-channel agreement with Monumental Sports & Entertainment, enhancing its market presence [1][2] - The partnership will allow ESPN BET to secure online market access in Washington D.C., expanding its reach to 19 states and nearly 46% of the U.S. population [2][6] - PENN's stock saw a 3% increase during trading hours, reflecting positive market sentiment towards the new partnership [1] Group 1: Partnership Details - The strategic partnership will make ESPN BET the sports betting partner for Monumental Sports' teams, including the Washington Capitals, Wizards, and Mystics [3] - The agreement includes various marketing components such as in-arena signage, out-of-home advertising, and unique hospitality experiences [4] - PENN's Chief Technology Officer highlighted the deal's potential to connect ESPN BET with a passionate sports community [5] Group 2: Growth and Market Expansion - In August 2023, PENN entered a transformative alliance with ESPN to rebrand its Barstool Sportsbook as ESPN BET, overseeing daily operations [5] - The launch of ESPN BET in New York in September 2024 significantly enhanced PENN's scale, leveraging ESPN's media reach for customer acquisition [6] - PENN's shares have increased by 6.8% over the past three months, outperforming the Zacks Gaming industry's growth of 4.1% [8]

Core Insights - Penn Entertainment shares experienced a surge following an upgrade from JPMorgan, which anticipates growth as the company's investments start to yield returns [1] - JPMorgan raised its rating for Penn from "neutral" to "overweight" and increased the price target from $19 to $27, indicating a potential upside of approximately 30% from the recent price of $20.81 [1] - Despite the recent gains, Penn shares have declined nearly 20% since the beginning of the year [1] Investment Outlook - Analysts expect Penn's investments in retail projects to start generating attractive double-digit cash-on-cash returns beginning in the second half of 2025 and into 2026 [1] - There is a projection of improving free cash flow due to a significant reduction in land-based capital expenditures anticipated in 2026 [1] - The company is expected to utilize its free cash flow to de-lever and reduce its cash interest expenses, alongside a noted decline in interactive gambling losses [1]

Company Overview - PENN Entertainment, Inc. operates 43 regional land-based casinos across the United States, covering the Northeast, South, West, and Midwest regions [1] - The company is actively pursuing opportunities in the online gambling market with the launch of ESPN Bet [1] Investment Strategy - The investment philosophy focuses on identifying mispriced securities by analyzing the drivers behind a company's financials, often revealed through a DCF model valuation [1] - This approach allows for a flexible investment strategy that encompasses traditional value, dividend, and growth investing, assessing all prospects of a stock to determine risk-to-reward [1]

PENN Entertainment, Inc. (PENN) reported a narrower-than-expected loss in third-quarter 2024 results. Meanwhile, the top line missed the Zacks Consensus Estimate but increased on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company's performance was backed by better-than-expected results in its Interactive segment. Improved hold and a higher parlay mix contributed to this growth. Also, lower promotional expenses supported the upside. However, stable con ...

| --- | --- | |------------------------------------------|-------| | | | | | | | | | | THIRD QUARTER 2024 EARNINGS PRESENTATION | | | November 7, 2024 | | 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 ...

PENN Entertainment (PENN) reported $1.64 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 1.2%. EPS of -$0.24 for the same period compares to $1.21 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.65 billion, representing a surprise of -0.83%. The company delivered an EPS surprise of +14.29%, with the consensus EPS estimate being -$0.28.While investors closely watch year-over-year changes in headline numbers -- revenue and earni ...

PENN Entertainment (PENN) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.28. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.29%. A quarter ago, it was expected that this casino operator would post a loss of $0.27 per share when it actually produced a loss of $0.18, delivering a surprise of 33.33%.Over the last four quarters, the compa ...