PENN Entertainment Q3 Earnings Top Estimates; Reaffirms FY22 Outlook

PENN Entertainment Q3 Earnings Top Estimates; Reaffirms FY22 Outlook
  • PENN Entertainment Inc PENN reported third-quarter FY22 sales growth of 7.5% year-on-year to $1.63 billion, beating the consensus of $1.58 billion.
  • Gaming revenue rose 4.9%, while Food, beverage, hotel, and other revenue increased 20.3% Y/Y.
  • Revenue from all Northeast, West, Midwest, and South segments rose from last year.
  • EPS of $0.72 beat the analyst consensus of $0.38.
  • Total operating expenses increased 16.9% Y/Y to $1.5 billion. The operating margin was 8.4%, and operating income for the quarter was $136.7 million. 
  • Adjusted EBITDA rose 20.9% to $440.4 million. Adjusted EBITDAR fell 1.7% to $471.9 million, with an Adjusted EBITDAR margin of 29%, contracting 273 basis points Y/Y.
  • The company held $1.7 billion in cash and equivalents as of September 30, 2022.
  • In Q3, PENN repurchased 5.3 million shares for $168 million. The remaining availability under its $750.0 million authorization was $211.1 million as of November 2, 2022.
  • Outlook: PENN reiterated the FY22 outlook for sales of $6.15 billion - $6.55 billion (consensus $6.36 billion).
  • Price Action: PENN shares are trading lower by 2.80% at $31.91 on the last check Thursday.
  • Photo Via Company

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