No one likes to miss out on double the return on one of their investments.
gaming stocks pen entertainment (pen -8.76%) It didn't seem like a good bet on Thursday. Investors pulled out of the company after the company reported quarterly results that fell short of analysts' expectations, sending the stock down almost 9%.And this was the day the benchmark was set. S&P500 The index rose, rising nearly 1%.
Double mistake in the first quarter
Before the market opened, Penn announced first-quarter numbers. The online and offline gaming company's revenue fell slightly year-over-year, down 4% to just under $1.61 billion. In the end, it turned into a loss of almost $115 million compared to his $514 million profit in the first quarter of 2023. Penn's non-GAAP (adjusted) earnings per share also turned negative at $0.79, compared to a profit of $0.39 in the same period last year.
Analysts tracking the stock had expected an improvement. In total, revenue was modeled at $1.64 billion and an adjusted net loss of just $0.57.
Casino operations in Pennsylvania were affected by bad weather early in the quarter, keeping customers away from the facilities. Meanwhile, the company's interactive division suffered from negative holds (the portion of gambling money kept by casino operators) from major sports games.
the future is virtual
Penn, which operates the online sportsbook ESPN Bet, nevertheless sounded optimistic about its future in the virtual gaming space during its earnings call. “Our improved online product offering will help engage, reinvigorate and sustain our growing database, while also providing support to sports fans and sports bettors,” CEO Jay Snowden said in a statement. “We will promote strategies that create highly differentiated experiences.”
Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends the following options: His January 2025 $25 long call on Penn Entertainment and his January 2025 $30 short call on Penn Entertainment. The Motley Fool has a disclosure policy.