PENN Entertainment (PENN) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Viewpoint - PENN Entertainment is expected to report a quarterly loss of $0.29 per share, a 63.3% increase in losses compared to the same period last year, with revenues projected at $1.7 billion, reflecting a year-over-year increase of 5.9% [1] Earnings Estimates - The consensus EPS estimate has been revised down by 48.6% over the last 30 days, indicating a significant reevaluation by analysts [2] - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Revenue Projections - Analysts estimate 'Revenues- West segment' to be $127.21 million, a decrease of 1.2% year over year [5] - The 'Revenues- Interactive segment' is projected at $312.88 million, indicating a substantial increase of 50.6% from the prior-year quarter [5] - 'Revenues- Midwest segment' is expected to reach $286.12 million, reflecting a year-over-year decline of 1.8% [5] - 'Revenues- Northeast segment' is projected at $683.75 million, showing a slight decrease of 0.1% from the year-ago quarter [6] - 'Revenues- South segment' is anticipated to be $287.13 million, indicating a year-over-year decline of 3.8% [6] - 'Revenues- Other segment' is expected to reach $6.15 million, reflecting a year-over-year increase of 2.5% [6] Adjusted EBITDAR Estimates - 'Adjusted EBITDAR- Midwest segment' is estimated at $111.47 million, down from $117 million in the previous year [7] - 'Adjusted EBITDAR- West segment' is projected at $45.25 million, slightly lower than the $45.90 million reported in the same quarter last year [7] - 'Adjusted EBITDAR- South segment' is expected to be $104.05 million, down from $113.50 million in the prior year [8] - 'Adjusted EBITDAR- Northeast segment' is projected at $200.12 million, compared to $202.60 million reported in the same quarter last year [8] Stock Performance - Over the past month, shares of PENN Entertainment have returned +12.6%, outperforming the Zacks S&P 500 composite's +11.5% change [8] - Currently, PENN carries a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [8]