Shares of entertainment and casino gaming services provider PENN Entertainment (NASDAQ:PENN) are up nearly 20% at the time of writing after it announced better-than-expected second-quarter numbers. The results come fresh on the heels of PENN teaming up with Disney’s (NYSE:DIS) ESPN in a $2 billion deal to shake up the world of sports betting.
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PENN’s Q2 revenue rose 2.9% year-over-year to $1.67 billion, outperforming estimates by $10 million. Additionally, EPS at $0.48 too, landed past expectations by $0.06. The company witnessed stable property-level performance during the quarter and relaunched its sportsbook app.
Interestingly, while PENN’s Northeast, South, West, and Midwest segments saw little to no growth during the quarter, virtually all of the growth in its topline was attributable to gains in the Interactive segment. Its online Barstool Sportsbook is expected to be rebranded as ESPN Bet in the fall of this year.
The company ended the quarter with a cash pile of $1.27 billion while its net debt stood at $1.4 billion.
Overall, the Street has a $32.60 consensus price target on PENN alongside a Moderate Buy consensus rating. This points to a 31.2% potential upside in the stock.
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