PENN Entertainment, Inc. PENN reported fourth-quarter 2024 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.
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PENN's fourth-quarter property-level operating results demonstrated strong performance, with properties unaffected by new competition. Despite widely recognized and customer-favorable sports betting outcomes during the quarter, the Interactive segment reported substantial year-over-year increases in both revenues and Adjusted EBITDA, driven by disciplined promotional strategies and accelerated growth in the online casino business.
The success of the iCasino segment has been supported by strong momentum following the recent launches of the standalone Hollywood Casino app in Pennsylvania and Michigan. Looking ahead to 2025 and 2026, the company remains optimistic about growth opportunities across all aspects of its business. It announced plans to repurchase at least $350 million worth of shares in 2025.
PENN’s Q4 Earnings & Revenue Discussion
In the quarter under review, PENN reported an adjusted loss per share of 44 cents, wider than the Zacks Consensus Estimate of a loss of 41 cents. In the prior-year quarter, it reported an adjusted loss per share of $1.75.
PENN Entertainment, Inc. Price, Consensus and EPS Surprise
PENN Entertainment, Inc. price-consensus-eps-surprise-chart | PENN Entertainment, Inc. Quote
Total revenues of $1.67 billion missed the Zacks Consensus Estimate of $1.68 billion. The top line increased 19.6% on a year-over-year basis. This upside was backed by the strong Interactive segment’s performance.
Revenues from the Northeast segment totaled $689.9 million, up 4.1% year over year. Revenues from the Midwest segment amounted to $290.7 million compared with $290.6 million in the prior-year quarter.
Revenues from the West and South segments totaled $129.4 million and $284.2 million, respectively, down 3.2% and 0.3% year over year.
The Other segment’s revenues totaled $3.7 million, flat year over year.
Meanwhile, the Interactive segment delivered revenues of $275 million, up from $31.5 million reported in the prior-year quarter.
PENN’s Operating Headlines
In the quarter under discussion, adjusted EBITDAR came in at $320.7 million compared with $112.5 million reported in the prior-year quarter. The adjusted EBITDAR margin expanded to 19.2% from 8.1% a year ago.
Penn Entertainment’s Interactive division incurred an adjusted EBITDAR loss of $109.8 million compared with a loss of $333.8 million in the prior-year quarter.
Other Financial Information About PENN
As of Dec. 31, 2024, PENN had cash and cash equivalents of $706.6 million compared with $1.07 billion as of Dec. 31, 2023. Traditional net debt as of Dec. 31, 2024, was $2.6 billion, down from $2.64 billion at 2023-end. Total liquidity as of Dec. 31, 2024, was $1.7 billion.
PENN 2024 Highlights
Total revenues in 2024 totaled $6.6 billion compared with $6.4 billion reported in 2023.
Total Adjusted EBITDAR in 2024 was $1.29 billion compared with $1.51 billion reported in 2023.
In 2024, the diluted loss per share was $2.05 compared with a loss of $3.22 in the previous year.
PENN’s Zacks Rank
PENN Entertainment currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
Hilton Worldwide Holdings Inc. HLT reported exceptional fourth-quarter 2024 results, wherein adjusted earnings and total revenues surpassed the Zacks Consensus Estimate and grew year over year.
The company's performance was backed by strong demand for leisure travel, with continued growth in business transient and group travel. These robust trends supported growth in occupancy and average daily rate, resulting in increased revenue per available room. Furthermore, favorable net unit growth compared with last year and the continuous efforts in expanding the portfolio globally added to the uptrend. HLT expects the robust travel trends to continue into 2025, positioning it to deliver strong results in the near term.
Mattel, Inc. MAT reported fourth-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
In 2024, Mattel repurchased $400 million worth of shares and improved its leverage ratio. The company remains ahead of schedule in achieving its $200 million cost-savings target by 2026. For 2025, Mattel projects continued revenue and earnings growth, increased investments in digital gaming and a $600 million share repurchase program, underscoring its commitment to long-term shareholder value creation. MAT anticipates its adjusted EPS in 2025 to be between $1.66 and $1.72 compared with $1.62 in 2024.
Marriott International, Inc. MAR reported fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined during the same period.
Marriott posted strong 2024 results, driven by steady global travel demand and strategic portfolio expansion. The company’s development momentum remained strong, with the signing of a record number of new deals and its development pipeline reaching 577,000 rooms. Given its vast global footprint, a loyalty program comprising nearly 228 million Marriott Bonvoy members and an asset-light model, MAR remains well-positioned to capitalize on travel demand and drive growth in the upcoming periods.
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PENN Entertainment, Inc. (PENN) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
