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Sports activities betting and on line casino operator PENN Leisure PENN is ready to report second quarter monetary outcomes earlier than the market opens Wednesday.
Right here’s a have a look at the important thing estimates and particulars to look at.
Earnings Estimates: PENN Leisure is predicted to report second quarter income of $1.67 billion, in line with estimates from Benzinga Professional.
The corporate reported income of $1.63 billion within the second quarter of the final fiscal 12 months and income of $1.67 billion within the first quarter of the present fiscal 12 months.
PENN Leisure has crushed analyst income estimates within the final 9 straight quarters.
Analysts estimate that PENN Leisure will report earnings per share of 42 cents within the second quarter. The corporate reported earnings per share of 15 cents within the second quarter of the final fiscal 12 months and 44 cents within the first quarter of the present fiscal 12 months.
PENN Leisure has missed earnings per share estimates in 5 of the final seven fiscal quarters.
Forward of the second quarter earnings report, a number of analysts have lowered their value targets.
Barclays analyst Brandt Montour has an Chubby ranking and lowered the value goal from $34 to $33.
Morgan Stanley analyst Dara Mohsenian has an Equal-Weight ranking and lowered the value goal from $27 to $26.
Associated Hyperlink: Dave Portnoy Not Assured Of Future With Barstool Sports activities: ‘My Contract’s Achieved In 20 Months.’ Might A New Pizza Evaluation Present Be In The Works?
Key Gadgets to Watch: PENN Leisure’s second quarter earnings report comes after rival sports activities betting firms DraftKings Inc DKNG and MGM Resorts Worldwide MGM reported robust outcomes and highlighted the improved EBITDA and profitability of their sports activities betting segments.
Through the first quarter, PENN Leisure’s Interactive sports activities betting unit reported a year-over-year improve in income. General, firm’s EBITDA was down 23.6% year-over-year, so traders and analysts are possible on the lookout for an enchancment in that line.
PENN accomplished the acquisition of Barstool Sports activities in February and raised its full-year steerage to a variety of $6.37 billion to $6.81 billion because of the acquisition. Traders are more likely to be concerned with listening to about a rise out there share of the Barstool Sportsbook model.
The corporate additionally introduced the migration to its proprietary expertise platform for Barstool Sportsbook in July. The transfer is predicted to open up extra betting choices and customization for Barstool Sportsbook and bettors.
“Migrating onto our proprietary expertise platform and introducing a completely upgraded Barstool Sportsbook is a milestone achievement,” PENN Leisure CEO Jay Snowden mentioned. “Having full management of our product and roadmap will result in improved operational effectivity and the flexibility to rapidly introduce new options, bespoke promotions and wagering markets.”
“I wish to congratulate our Interactive group members who labored tirelessly to make sure a profitable on schedule migration, which higher positions us to compete within the on-line gaming area,” he added.
Dialogue surrounding the migration and its impact on EBITDA might be a positive facet for the corporate within the second quarter.
PENN Value Motion: Shares of PENN Leisure have lagged friends during the last 12 months and within the year-to-date interval. PENN shares are down 33% within the final 12 months and down 17% year-to-date in 2023.
DraftKings shares are up 74% within the final 12 months and up 191% year-to-date in 2023.
MGM shares are up 32% within the final 12 months and up 37% year-to-date in 2023.
The Roundhill Sports activities Betting & iGaming ETF BETZ, which tracks the general sports activities betting and iGaming sector, has additionally outperformed PENN. BETZ shares are up 8% within the final 12 months and up 24% year-to-date in 2023.
Learn Subsequent: Benzinga Names PENN Leisure A Heavy Hitter Award Recipient At Inaugural Titans Sports activities Betting Occasion
Photograph: Shutterstock
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