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PENN Entertainment is expected to report September-quarter results on Nov. 5, with Wall Street looking for higher earnings and revenue, according to Yahoo Finance in an analysis by Simply Wall St.
The preview follows a rebound in PENN’s stock, though its longer-term performance remains negative. The analysis also points to a negative Earnings ESP indicator as a sign of softening sentiment ahead of the report.
PENN Shares Rebound Ahead of Earnings
The analysis lists PENN’s closing share price at $15.90, with a seven-day return of 9.66% and a 30-day gain of 8.53%.
Over the preceding 90 days, however, the shares declined 22.55%. Its one-year total shareholder return was down 3.40%.
$24.39 Valuation Depends on Growth Assumptions
The most-followed valuation narrative cited in the analysis estimates PENN’s fair value at $24.39, putting the reported closing price about 35% below that estimate.
That valuation depends on a model discounting projected cash flows at 12.54%. Its assumptions include annual revenue growth of about 4.9%, profit margins of 5.6% and earnings of $466.8 million by around 2029.
The narrative also assumes PENN’s share count will shrink roughly 4.4% annually over the next three years, with shares trading at a projected price-to-earnings ratio of 8.3 by around 2029. Those forecasts underpin the estimated valuation rather than represent achieved results.
Interactive Losses and Gaming Taxes Pose Risks
The analysis identifies structural pressure in some regional markets, ongoing losses in PENN’s Interactive unit and leverage as risks to the investment case.
It also cites higher gaming taxes in several states, warning that increased taxes in key markets could quickly erode the projected upside.
More from playwv.com – PENN Entertainment sets Nov. 5 date for Q3 results and investor webcast – Penn Entertainment Removing Barstool Brand At Hollywood Casino Charles Town
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Source: As reported by Yahoo Finance.
