Why PENN Entertainment Shares Are Jumping Today

PENN Entertainment Inc PENN reported second-quarter FY23 sales growth of 2.9% year-on-year to $1.67 billion, in-line with the analyst consensus.

Gaming revenue declined 2.5%, while Food, beverage, hotel, and other revenue increased 26.7% Y/Y.

Revenue from Northeast, and Interactive segments rose from last year, while South, Midwest, and West segments decreased Y/Y.

EPS of $0.48 beat the analyst consensus of $0.42.

Total operating expenses increased 10.9% Y/Y to $1.5 billion. The operating margin was 12.3%, and operating income for the quarter decreased 32% to $205.5 million. 

Also Read: PENN Entertainment Stock Soars On ESPN Deal, Selling Barstool Sports Back To Dave Portnoy

Adjusted EBITDA fell 30.7% to $330.4 million. Adjusted EBITDAR dropped 5.5% to $476.8 million, with an Adjusted EBITDAR margin of 28.5%, contracting 250 basis points Y/Y.

The company held $1.27 billion in cash and equivalents as of June 30, 2023.

In Q2, PENN repurchased $99.8 million of shares at an average price of $26.31.

Price Action: PENN shares are trading higher by 19.27% at $29.62 in premarket on the last check Wednesday.