{"id":2139762,"date":"2025-11-06T21:33:17","date_gmt":"2025-11-06T21:33:17","guid":{"rendered":"https:\/\/celebrity.land\/en\/?p=2139762"},"modified":"2025-11-06T21:33:17","modified_gmt":"2025-11-06T21:33:17","slug":"penn-entertainment-nasdaqpenn-reports-sales-below-analyst-estimates-in-q3-earnings-but-stock-soars-9-2","status":"publish","type":"post","link":"https:\/\/celebrity.land\/en\/penn-entertainment-nasdaqpenn-reports-sales-below-analyst-estimates-in-q3-earnings-but-stock-soars-9-2\/","title":{"rendered":"PENN Entertainment (NASDAQ:PENN) Reports Sales Below Analyst Estimates In Q3 Earnings, But Stock Soars 9.2%"},"content":{"rendered":"<p><\/p>\n<div data-testid=\"article-body\">\n<div class=\"bodyItems-wrapper\">\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Casino, sports betting and entertainment operator PENN Entertainment (NASDAQ:PENN) fell short of the markets revenue expectations in Q3 CY2025 as sales rose 4.8% year on year to $1.72 billion. Its non-GAAP loss of $0.22 per share was significantly below analysts\u2019 consensus estimates.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Is now the time to buy PENN Entertainment? <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/stockstory.org\/us\/stocks\/nasdaq\/penn?utm_source=earningsArticle&amp;utm_medium=yahoo&amp;utm_campaign=top&amp;utm_article=C1hyaW8FZkY%3D&amp;utm_ticker=PENN\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Find out in our full research report;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Find out in our full research report<\/a>.<!-- HTML_TAG_END --><\/p>\n<ul class=\"yf-1woyvo2\">\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><!-- HTML_TAG_START --><strong>Revenue:<\/strong> $1.72 billion vs analyst estimates of $1.73 billion (4.8% year-on-year growth, 0.6% miss)<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><!-- HTML_TAG_START --><strong>Adjusted EPS:<\/strong> -$0.22 vs analyst estimates of -$0.03 (significant miss)<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><!-- HTML_TAG_START --><strong>Adjusted EBITDA:<\/strong> $194.9 million vs analyst estimates of $385.2 million (11.3% margin, 49.4% miss)<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><!-- HTML_TAG_START --><strong>Operating Margin:<\/strong> -45.2%, down from 4.1% in the same quarter last year<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><!-- HTML_TAG_START --><strong>Free Cash Flow Margin:<\/strong> 10.1%, up from 2.6% in the same quarter last year<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><!-- HTML_TAG_START --><strong>Market Capitalization:<\/strong> $2.30 billion<!-- HTML_TAG_END --><\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->As stated in the joint release issued this morning by PENN and ESPN, Jay Snowden, Chief Executive Officer and President, said: \u201cWhen we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space. Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->A company\u2019s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, PENN Entertainment grew its sales at a 11.9% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the consumer discretionary sector, which enjoys a number of secular tailwinds.<!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-8xybrv\">\n<div class=\"image-container yf-1gfnohs loader\" style=\"--max-height: 540px;\">\n<div class=\"image-wrapper yf-1gfnohs\" style=\"--aspect-ratio: 960 \/ 540; --img-max-width: 960px;\"><\/div>\n<\/div><figcaption class=\"yf-8xybrv\"><!-- HTML_TAG_START -->PENN Entertainment Quarterly Revenue<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. PENN Entertainment\u2019s recent performance shows its demand has slowed as its annualized revenue growth of 2% over the last two years was below its five-year trend. Note that COVID hurt PENN Entertainment\u2019s business in 2020 and part of 2021, and it bounced back in a big way thereafter.<!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-8xybrv\">\n<div class=\"image-container yf-1gfnohs loader\" style=\"--max-height: 540px;\">\n<div class=\"image-wrapper yf-1gfnohs\" style=\"--aspect-ratio: 960 \/ 540; --img-max-width: 960px;\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"PENN Entertainment Year-On-Year Revenue Growth\" loading=\"lazy\" height=\"540\" width=\"960\" class=\"yf-1gfnohs loader\"\/><\/div>\n<\/div><figcaption class=\"yf-8xybrv\"><!-- HTML_TAG_START -->PENN Entertainment Year-On-Year Revenue Growth<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->PENN Entertainment also breaks out the revenue for its most important segment, Northeast Region. Over the last two years, PENN Entertainment\u2019s Northeast Region revenue (casinos, hotels) averaged 1.6% year-on-year growth.<!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<p><button class=\"secondary-btn fin-size-large readmore-button    rounded   yf-7w7t7o\" data-ylk=\"elm:readmore;itc:1;sec:content-canvas;slk:Story%20Continues\" aria-label=\"Story Continues\" title=\"Story Continues\"> <span>Story Continues<\/span> <\/button> <\/p>\n<div class=\"read-more-wrapper\" style=\"display: none\" data-testid=\"read-more\">\n<figure data-testid=\"article-figure-image\" class=\"yf-8xybrv\">\n<div class=\"image-container yf-1gfnohs loader\" style=\"--max-height: 540px;\">\n<div class=\"image-wrapper yf-1gfnohs\" style=\"--aspect-ratio: 960 \/ 540; --img-max-width: 960px;\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"PENN Entertainment Quarterly Revenue by Segment\" loading=\"lazy\" height=\"540\" width=\"960\" class=\"yf-1gfnohs loader\"\/><\/div>\n<\/div><figcaption class=\"yf-8xybrv\"><!-- HTML_TAG_START -->PENN Entertainment Quarterly Revenue by Segment<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->This quarter, PENN Entertainment\u2019s revenue grew by 4.8% year on year to $1.72 billion, falling short of Wall Street\u2019s estimates.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Looking ahead, sell-side analysts expect revenue to grow 6.5% over the next 12 months. While this projection suggests its newer products and services will fuel better top-line performance, it is still below the sector average.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Microsoft, Alphabet, Coca-Cola, Monster Beverage\u2014all began as under-the-radar growth stories riding a massive trend. We\u2019ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking. <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/stockstory.org\/stock-pick-l\/c7d6b86b-76fe-4aaf-86c6-563940fef8d6?utm_source=earningsArticle&amp;utm_medium=yahoo&amp;utm_campaign=SP_6&amp;utm_article=C1hyaW8FZkY%3D&amp;utm_ticker=PENN\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Go here for access to our full report;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Go here for access to our full report<\/a>.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->PENN Entertainment\u2019s operating margin has shrunk over the last 12 months and averaged negative 4.9% over the last two years. Unprofitable consumer discretionary companies with falling margins deserve extra scrutiny because they\u2019re spending loads of money to stay relevant, an unsustainable practice.<!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-8xybrv\">\n<div class=\"image-container yf-1gfnohs loader\" style=\"--max-height: 540px;\">\n<div class=\"image-wrapper yf-1gfnohs\" style=\"--aspect-ratio: 960 \/ 540; --img-max-width: 960px;\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"PENN Entertainment Trailing 12-Month Operating Margin (GAAP)\" loading=\"lazy\" height=\"540\" width=\"960\" class=\"yf-1gfnohs loader\"\/><\/div>\n<\/div><figcaption class=\"yf-8xybrv\"><!-- HTML_TAG_START -->PENN Entertainment Trailing 12-Month Operating Margin (GAAP)<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->This quarter, PENN Entertainment generated a negative 45.2% operating margin. The company&#8217;s consistent lack of profits raise a flag.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Revenue trends explain a company\u2019s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth \u2013 for example, a company could inflate its sales through excessive spending on advertising and promotions.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->PENN Entertainment\u2019s earnings losses deepened over the last five years as its EPS dropped 1.2% annually. We tend to steer our readers away from companies with falling EPS, where diminishing earnings could imply changing secular trends and preferences. Consumer Discretionary companies are particularly exposed to this, and if the tide turns unexpectedly, PENN Entertainment\u2019s low margin of safety could leave its stock price susceptible to large downswings.<!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-8xybrv\">\n<div class=\"image-container yf-1gfnohs loader\" style=\"--max-height: 540px;\">\n<div class=\"image-wrapper yf-1gfnohs\" style=\"--aspect-ratio: 960 \/ 540; --img-max-width: 960px;\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"PENN Entertainment Trailing 12-Month EPS (Non-GAAP)\" loading=\"lazy\" height=\"540\" width=\"960\" class=\"yf-1gfnohs loader\"\/><\/div>\n<\/div><figcaption class=\"yf-8xybrv\"><!-- HTML_TAG_START -->PENN Entertainment Trailing 12-Month EPS (Non-GAAP)<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->In Q3, PENN Entertainment reported adjusted EPS of negative $0.22, up from negative $0.25 in the same quarter last year. Despite growing year on year, this print missed analysts\u2019 estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast PENN Entertainment\u2019s full-year EPS of negative $0.81 will flip to positive $1.17.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->We struggled to find many positives in these results. Its EBITDA missed and its EPS fell short of Wall Street\u2019s estimates. Overall, this was a softer quarter. The stock traded up 9.2% to $17.87 immediately following the results.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->So should you invest in PENN Entertainment right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/stockstory.org\/us\/stocks\/nasdaq\/penn?utm_source=earningsArticle&amp;utm_medium=yahoo&amp;utm_campaign=end1&amp;utm_article=C1hyaW8FZkY%3D&amp;utm_ticker=PENN\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:We cover that in our actionable full research report which you can read here, it\u2019s free for active Edge members;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">We cover that in our actionable full research report which you can read here, it\u2019s free for active Edge members<\/a>.<!-- HTML_TAG_END --><\/p>\n<\/p><\/div><\/div>\n<p><em> \u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n<p><em> \u2018 Some details of this article were extracted from the following source finance.yahoo.com \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Casino, sports betting and entertainment operator PENN Entertainment (NASDAQ:PENN) fell short of the markets revenue expectations in Q3 CY2025 as sales rose 4.8% year on year to $1.72 billion. Its non-GAAP loss of $0.22 per share was significantly below analysts\u2019 consensus estimates. Is now the time to buy PENN Entertainment? Find out in our full [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2018086,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[25172],"tags":[317521,316791,339800,176147],"class_list":["post-2139762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","tag-analyst-estimates","tag-consumer-discretionary","tag-operating-margin","tag-penn-entertainment"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2025\/09\/PENN-Vs-The-Rest-Of-The-Casino-Operator-Stocks.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2139762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/comments?post=2139762"}],"version-history":[{"count":1,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2139762\/revisions"}],"predecessor-version":[{"id":2139763,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2139762\/revisions\/2139763"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/2018086"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=2139762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=2139762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=2139762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}