PENN Entertainment Q4 revenue beats estimates, EBITDA misses

Reuters02-26
PENN Entertainment Q4 revenue beats estimates, EBITDA misses

Overview

  • Gaming and entertainment firm's Q4 revenue rose, beating analyst expectations

  • Adjusted EBITDA for Q4 missed analyst estimates

  • Company achieved positive adjusted EBITDA in December for Interactive segment

Outlook

  • PENN expects 20% growth in segment adjusted EBITDAR for 2026

  • Company aims for break-even adjusted EBITDA in Interactive segment in 2026

  • PENN plans to reduce lease adjusted net leverage by over 1 turn in 2026

Result Drivers

  • RETAIL GROWTH - Retail adjusted EBITDAR grew year-over-year, despite poor weather in December, with regional strength in Ohio and St. Louis

  • INTERACTIVE REVENUE - Record Interactive segment gaming revenue driven by iCasino and online sportsbook growth

  • COST MANAGEMENT - Positive adjusted EBITDA in December for Interactive segment attributed to disciplined cost management

Company press release: ID:nBw9CJ8bCa

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$1.81 bln

$1.76 bln (18 Analysts)

Q4 EPS

-$0.55

Q4 Net Income

-$73.40 mln

Q4 Adjusted EBITDA

Miss

$225.80 mln

$390.86 mln (16 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the casinos & gaming peer group is "buy."

  • Wall Street's median 12-month price target for PENN Entertainment Inc is $18.00, about 43.5% above its February 25 closing price of $12.54

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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