PENN Entertainment, Inc. PENN reported a narrower-than-expected loss in first-quarter 2025 results. Meanwhile, the top line missed the Zacks Consensus Estimate but increased on a year-over-year basis.

Following the results, the company’s shares declined 2.7% during yesterday’s trading hours.

Despite severe weather earlier in the year, the company showed resilience during the first quarter. Gaming volumes improved in March and remained stable through April and early May. PENN’s Interactive segment achieved record gaming revenues and posted strong year-over-year growth in both revenues and adjusted EBITDA, despite a weak sports betting hold across the industry.

PENN’s Q1 Earnings & Revenue Discussion

In the quarter under review, PENN reported an adjusted loss per share of 25 cents, which was narrower than the Zacks Consensus Estimate of a loss of 29 cents. The bottom line improved from an adjusted loss per share of 79 cents reported in the year-ago quarter.

Total revenues of $1.67 billion missed the Zacks Consensus Estimate of $1.7 billion. However, the top line increased 4.1% on a year-over-year basis. This upside was backed by the strong performance of the Interactive segment. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

PENN Entertainment, Inc. Price, Consensus and EPS SurprisePENN Entertainment, Inc. Price, Consensus and EPS Surprise

PENN Entertainment, Inc. price-consensus-eps-surprise-chart | PENN Entertainment, Inc. Quote

Revenues from the Northeast segment totaled $680.9 million, down 0.6% year over year. Revenues from the Midwest segment amounted to $288.3 million compared with $298.5 million in the prior-year quarter.

Revenues from the West segments totaled $129.7 million, up 0.4% year over year. Revenues from South declined 3.4% year over year to $288.3 million.

The Other segment’s revenues totaled $5.3 million, down 11.7% year over year.

Meanwhile, the Interactive segment delivered revenues of $290.1 million, up from $207.7 million reported in the prior-year quarter.

PENN’s Operating Headlines

In the quarter under discussion, adjusted EBITDAR was $329.2 million compared with $256.2 million reported in the prior-year quarter. The adjusted EBITDAR margin expanded to 19.7% from 15.9% a year ago.

Penn Entertainment’s Interactive division incurred an adjusted EBITDAR loss of $89 million compared with a loss of $196 million in the prior-year quarter.

Other Financial Information About PENN

As of March 31, 2025, PENN had cash and cash equivalents of $591.6 million compared with $706.6 million as of Dec. 31, 2024. Traditional net debt as of March 31, 2025, was $2.1 billion, down from $2.6 billion at 2024-end. Total liquidity as of March 31, 2025, was $1.5 billion.

Story Continues

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

Norwegian Cruise Line Holdings Ltd. NCLH reported first-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. Both top and bottom lines decreased on a year-over-year basis.

Results in the quarter were hurt by a 2% decline in Capacity Days, stemming from a higher number of Berths out of service due to larger ships undergoing dry-dock, as well as a strategic move to reduce passenger air participation rates. For 2025, Norwegian Cruise anticipates occupancy to be approximately 102.5% compared with the prior guidance of 103.4% and Capacity Days to be about 24.545 million.

MGM Resorts International MGM reported first-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom lines declined from the prior-year quarter’s level.

Management remains optimistic about the outlook for the rest of 2025, supported by strong forward bookings and expectations for record hotel performance in April on the Las Vegas Strip. MGM Resorts stated progress on the $200 million EBITDA enhancement plan and expects more than $150 million to be realized in 2025.

Caesars Entertainment, Inc. CZR reported mixed first-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. Nonetheless, both top and bottom lines improved on a year-over-year basis.

Caesars Entertainment’s first-quarter performance was driven by record results in the Digital segment. Growth in the regional segment, supported by recently opened properties, and solid performance in Las Vegas, despite a tough comparison to last year’s Super Bowl period, also aided the quarter’s performance.

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