Penn Entertainment Stock Jumps on Regional Casino Strength
Posted on: April 23, 2026, 11:31h.
Last updated on: April 23, 2026, 11:31h.
- Penn posted a surprise first-quarter profit on broad-based regional casino strength
- Investors appear to like the operator’s 2026 guidance
- The interactive division continues to lose money, but it’s making progress
Penn Entertainment (NASDAQ: PENN) stock surged Thursday after the largest operator of regional casinos notched a surprise first-quarter profit.
In midday trading, the gaming stock is higher by more than 15% on volume that’s already surpassed the daily average after the Ameristar operator said its land-based casino segment posted first-quarter earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) of $471.4 million on sales of $1.4 billion. That contributed to per share earnings of 11 cents, far better than the loss of a penny a share analysts expected and well ahead of the loss of 25 cents delivered in the year-earlier period.
Penn’s regional casinos in the Midwest, South and the West delivered higher revenue on a year-over-year with the West being a clear source of strength.
Trends were encouraging across the portfolio, with strength in our West segment reflecting the continued ramp of M Resort’s (Henderson, Nevada) new hotel tower and strong execution by the team at Ameristar Casino Resort and Spa in Black Hawk, Colo.,” said CEO Jay Snowden in a statement.
Penn stock also got a boost from the operator’s decent 2026 guidance, including a $12 million bump to the midpoint of land-based casino EBITDAR range. The operator acknowledged its interactive unit could lose up to $20 million, down from a prior call of breakeven, but investors appear at peace with that because the revised guidance for that unit looks mostly attributable to the upcoming launch of iGaming in Alberta, Canada.
Penn Investments Paying Off
Over the past several years, Penn spent significant amounts of capital refurbishing some of its regional casinos, including several in the Midwest.
That roster includes $360 million in spending in Illinois to enhance Hollywood Casino Aurora while moving the Hollywood Casino Joliet, formerly a riverboat casino, ashore. Penn is also just weeks away from opening a $100 million hotel tower at the Hollywood Casino Columbus in Ohio.
Those investments and others are paying off for the operator at a time when destination gaming markets continue struggling with slack visitation, indicating Penn is benefiting from its status as an operator of venues its core customers can easily access by car.
“While recent underperformance partially factors concerns on the consumer & rising competitor promo spend, we see PENN as comparatively well-positioned given geographic diversification, well-documented operating prowess, and relatively higher quality assets enabling PENN to compete primarily on product,” observes Stifel analyst Jeffrey Stantial. “We also see an attractive pipeline of growth projects in Retail, with proof points of return on Joliet potentially improving sentiment on the broader pipeline.”
He rates Penn stock a “buy” with a $22 price target.
Some Interactive Progress
Penn’s various online sports betting dalliances have been a drag on the stock in recent years, but with ESPN Bet in the rearview mirror, the operator is making strides, buoyed by a focus on its higher margin Hollywood Casino iGaming platform.
The company’s first-quarter interactive EBITDA loss of $10.8 million was better than the loss of $13.2 million Wall Street expected. Stantial says Penn’s expected Alberta iGaming spending is in-line with what rivals are forecasting.
“We note $20 million is consistent with our DraftKings/FanDuel launch investment estimates, confirming management’s intent to be a market leader consistent with market share in Ontario performance,” adds the Stifel analyst.
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