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What's in Store for Caesars Entertainment's (CZR) Q1 Earnings?
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Caesars Entertainment, Inc. (CZR - Free Report) is scheduled to report first-quarter 2022 results on May 3, 2022, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 40.7%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line is pegged at a loss of $2.15 per share, indicating a decline of 4.4% from a loss of $2.06 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $2,311 million, suggesting an increase of 36% from the year-ago quarter’s reported figure.
Caesars Entertainment, Inc. Price and EPS Surprise
Let's take a look at how things have shaped up in the quarter.
Factors to Note
Caesars Entertainment’s first-quarter performance is likely to have benefited from pent-up demand, sports betting expansion, property developments and rebranding initiatives. This along with a focus on enhanced iCasino offerings (concerning the roll out of a new game portfolio) coupled with scaling of digital business (through customer acquisition) is likely to have driven the first-quarter top line.
The strong performance of the regional destination properties coupled with improvement in occupancy levels is likely to have aided the company’s performance in the first quarter. During the previous quarter’s earnings call, the company revealed that occupancy in Las Vegas (as of February 2022) reached 80% and that it expects occupancy in March to reach the mid 80% range. With group attrition at elevated levels and measures of cancellations to new bookings declining, the momentum is likely to have continued in the first quarter. The Zacks Consensus Estimate for Las Vegas revenues and regional revenues is pegged at $875 million and $1,332 million, respectively, indicating growth of 76.1% and 20.2% from the prior-year quarter’s levels.
However, increased investments in odds and profit boost, competitive pricing strategies and lower hold in certain markets are likely to have impacted the company’s performance in the first quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Caesars Entertainment this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: Caesars Entertainment has an Earnings ESP of -2.43%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some 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.
Golden Entertainment, Inc. (GDEN - Free Report) has an Earnings ESP of +7.72% and a Zacks Rank #2.
Shares of Golden Entertainment have gained 45.9% in the past year. GDEN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 204.7%.
Callaway Golf Company has an Earnings ESP of +7.22% and a Zacks Rank #3.
Shares of Callaway have declined 24% in the past year. ELY’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 1,047.2%.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +9.50% and a Zacks Rank #3.
Shares of Penn National have declined 16.9% in the past three months. PENN’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 6.9%.
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What's in Store for Caesars Entertainment's (CZR) Q1 Earnings?
Caesars Entertainment, Inc. (CZR - Free Report) is scheduled to report first-quarter 2022 results on May 3, 2022, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 40.7%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line is pegged at a loss of $2.15 per share, indicating a decline of 4.4% from a loss of $2.06 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $2,311 million, suggesting an increase of 36% from the year-ago quarter’s reported figure.
Caesars Entertainment, Inc. Price and EPS Surprise
Caesars Entertainment, Inc. price-eps-surprise | Caesars Entertainment, Inc. Quote
Let's take a look at how things have shaped up in the quarter.
Factors to Note
Caesars Entertainment’s first-quarter performance is likely to have benefited from pent-up demand, sports betting expansion, property developments and rebranding initiatives. This along with a focus on enhanced iCasino offerings (concerning the roll out of a new game portfolio) coupled with scaling of digital business (through customer acquisition) is likely to have driven the first-quarter top line.
The strong performance of the regional destination properties coupled with improvement in occupancy levels is likely to have aided the company’s performance in the first quarter. During the previous quarter’s earnings call, the company revealed that occupancy in Las Vegas (as of February 2022) reached 80% and that it expects occupancy in March to reach the mid 80% range. With group attrition at elevated levels and measures of cancellations to new bookings declining, the momentum is likely to have continued in the first quarter. The Zacks Consensus Estimate for Las Vegas revenues and regional revenues is pegged at $875 million and $1,332 million, respectively, indicating growth of 76.1% and 20.2% from the prior-year quarter’s levels.
However, increased investments in odds and profit boost, competitive pricing strategies and lower hold in certain markets are likely to have impacted the company’s performance in the first quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Caesars Entertainment this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: Caesars Entertainment has an Earnings ESP of -2.43%. 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.
Stocks Poised to Beat Earnings Estimates
Here are some 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.
Golden Entertainment, Inc. (GDEN - Free Report) has an Earnings ESP of +7.72% and a Zacks Rank #2.
Shares of Golden Entertainment have gained 45.9% in the past year. GDEN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 204.7%.
Callaway Golf Company has an Earnings ESP of +7.22% and a Zacks Rank #3.
Shares of Callaway have declined 24% in the past year. ELY’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 1,047.2%.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +9.50% and a Zacks Rank #3.
Shares of Penn National have declined 16.9% in the past three months. PENN’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 6.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.