Casino, sports betting and entertainment operator PENN Entertainment (NASDAQ:PENN) will be reporting earnings tomorrow before the bell. Here's what you need to know.

PENN Entertainment missed analysts' revenue expectations by 9% last quarter, reporting revenues of $1.40 billion, down 12% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Is PENN Entertainment a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting PENN Entertainment's revenue to decline 2.2% year on year to $1.64 billion, a reversal from the 7% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.52 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PENN Entertainment has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.5% on average.

Looking at PENN Entertainment's peers in the casino operator segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 4.3%, meeting analysts' expectations, and Caesars Entertainment reported a revenue decline of 3.1%, falling short of estimates by 3.1%. Monarch traded down 3.9% following the results.

Read our full analysis of Monarch's results here and Caesars Entertainment's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the casino operator stocks have fared somewhat better, they have not been spared, with share prices down 5.9% on average over the last month. PENN Entertainment is down 6.1% during the same time and is heading into earnings with an average analyst price target of $26 (compared to the current share price of $16.53).

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