- PENN Entertainment Inc (NASDAQ: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 $26.73 on the last check Thursday.
Multi-Banner Cannabis Retailer’s Q3 Revenue Slumps Over 42% YoY But CEO Remains Optimistic
Shiny Health & Wellness Corp. has reported a decrease in sales to CA$ 4.3 million ($3.2m million) for the three months ending October 31, 2023, down from CA$ 7.46m the previous financial year. The decline was attributed to market trends in the Ontario cannabis retail sector throughout the period, the pharmaceutical company said. Shiny Health also closed underperforming adult-use cannabis dispensaries and sold a number of larger stores. The Toronto-based firm recently inked an agreement with Karan S. Holla for his chain of 10 adult-use cannabis retail outlets, Stash & Co. CEO Meris Kott said Shiny Health was gradually building its brand presence in Ontario. The pharma company revealed that it made a CA$ 6m net loss for the quarter, an uptick from the CA$ 1.75m loss in the corresponding period the year before.
