Why PENN Entertainment (PENN) Shares Are Plummeting Today - PENN Entertainment (NASDAQ:PENN)

PENN Entertainment Inc PENN shares are down sharply Thursday morning following its Q1 results. The company surpassed Street view as its solid performance in the Northeast mostly offset softer results in the South.
PENN reported first-quarter FY23 sales growth of 7% year-on-year to $1.67 billion, beating the consensus of $1.59 billion.
Gaming revenue rose 2.6%, while Food, beverage, hotel, and other revenue increased 27.7% Y/Y.
Revenue from Northeast, Midwest, and Interactive segments rose from last year, while that of South and West segments decreased Y/Y.
Adjusted EPS of $0.44 beat the analyst consensus of $0.38.
Total operating expenses increased 15.8% Y/Y to $1.5 billion. The operating margin was 11.9%, and operating income for the quarter was $199.1 million.
Adjusted EBITDA fell 23.6% to $332.2 million. Adjusted EBITDAR dropped 3.3% to $478.2 million, with an Adjusted EBITDAR margin of 28.6%, contracting 300 basis points Y/Y.
The company held $1.3 billion in cash and equivalents as of March 31, 2023.
In Q1, PENN repurchased 1.6 million shares for $50 million. The remaining availability under its February 2022 authorization was $80.4 million and under December 2022 authorization was $750 million as of May 3, 2023.
Outlook: The company raised its prior 2023 revenue guidance range to $6.37 billion - $6.81 billion (prior view $6.15 billion - $6.58 billion) (consensus $6.46 billion) to reflect the Barstool acquisition, which is neutral to Adjusted EBITDAR. As a result, the company's prior 2023 Adjusted EBITDAR guidance range of $1.875 billion ‒ $2.0 billion remains unchanged.
Also Read: Penn Entertainment Analyst Downgrades Barstool Sports Owner, Names 2 Gaming Stocks To Buy
Price Action: PENN shares are trading lower by 11.24% at $26.73 on the last check Thursday.

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Why PENN Entertainment Shares Are Plummeting Today

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