Factors Setting the Tone for Penn National (PENN) Q3 Earnings

Penn National Gaming, Inc. PENN is scheduled to report third-quarter 2020 results on Oct 29. In the last-reported quarter, the company delivered an earnings surprise of 18%.

How Are Estimates Placed?

The Zacks Consensus Estimate for third-quarter earnings is pegged at 48 cents, indicating growth of 26.3% from 38 cents reported in the year-ago quarter.

For revenues, the consensus mark stands at nearly $1.11 billion, indicating a decline of 18.2% from the prior-year quarter.

Let's take a look at how things have shaped up in the quarter.

Penn National Gaming, Inc. Price and EPS Surprise


Penn National Gaming, Inc. Price and EPS Surprise

Penn National Gaming, Inc. price-eps-surprise | Penn National Gaming, Inc. Quote

Factors to Note

Penn National’s third-quarter results are likely to reflect the impact of the coronavirus pandemic. Notably, reduced travel and demand for casino gaming as well as related amenities owing to the pandemic is likely to have dented the top line in the third quarter.

Notably, the Zacks Consensus Estimate for the Northeast, South, West, and Midwest segment is currently pinned at a respective $535 million, $231 million, $99 million, $217 million, indicating a decline of 14.9%, 16.5%, 38.7%, and 21.3% from the year-ago reported figure. Meanwhile, the consensus mark for Other segments is pegged at $20.1 million, indicating growth of 70% from the prior-year quarter.

Nonetheless, increased focus on the development of Barstool Sports betting app, sports books build-outs and omni-channel distribution strategy is likely to have aided the company’s performance in the to-be-reported quarter. Moreover, solid iCasino revenues are likely to have driven the top line in the to-be-reported quarter.

What Our Model Says

Our proven model predicts an earnings beat for Penn National this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.

Earnings ESP: Penn National has an Earnings ESP of +17.36%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Camping World Holdings, Inc. CWH has a Zacks Rank #1 and an Earnings ESP of +22.91%.

Brunswick Corporation BC has a Zacks Rank #2 and an Earnings ESP of +1.94%.

Activision Blizzard, Inc. ATVI has a Zacks Rank #2 and an Earnings ESP of +3.29%.

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