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Caesars Entertainment (CZR) Down 12.5% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Caesars Entertainment (CZR - Free Report) . Shares have lost about 12.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Caesars Entertainment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Caesars’ Q2 Earnings Lag Estimates, Revenues Surpass
Caesars Entertainment, reported mixed second-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top line rose year over year, while the bottom line declined.
Earnings & Revenue Discussion
In the quarter under review, the company posted adjusted earnings per share (EPS) of 16 cents, missing the Zacks Consensus Estimate of 25 cents. In the prior-year quarter, the company reported an adjusted EPS of 48 cents.
Net revenues during the quarter were $2,821 million, beating the Zacks Consensus Estimate of $2,773 million by 1.7%. The top line increased 12.7% on a year-over-year basis.
During the quarter, same-store adjusted EBITDA came in at $978 compared with $1,011 million reported in the prior-year quarter. Same-store adjusted EBITDA, excluding Caesars’ Digital segment, was $1.05 billion during the quarter compared with $1.01 billion reported in the year-ago quarter.
Segmental Performance
During the quarter, net revenues from the Las Vegas segment were $1,142 million compared with $855 million reported in the year-ago quarter. The segment’s adjusted EBITDA was $547 million compared with $423 million reported in the prior-year quarter.
Coming to the Regional segment, net revenues during the quarter were $1,454 million compared with $1,516 million reported in the year-ago quarter. The segment’s adjusted EBITDA totaled $513 million compared with $604 million reported in the prior-year quarter.
During the quarter, net revenues from the Caesars Digital segment came in at $152 million compared with $117 million reported in the prior-year quarter. The segment’s adjusted EBITDA came in at a negative $69 million against $2 million reported in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter were $74 million compared with $56 million reported in the prior-year quarter. The segment’s adjusted EBITDA amounted to $22 million compared with $24 million reported in the prior-year quarter.
Balance Sheet
As of Jun 30, 2022, the company’s cash and cash equivalents were $997 million compared with $814 million as of Mar 31, 2022.
Net debt as of Jun 30, 2022, stood at $13,197 million compared with $13,492 million as of Mar 31, 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -19.79% due to these changes.
VGM Scores
Currently, Caesars Entertainment has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Caesars Entertainment has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Caesars Entertainment belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Royal Caribbean (RCL - Free Report) , has gained 5.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Royal Caribbean reported revenues of $2.18 billion in the last reported quarter, representing a year-over-year change of +4190.4%. EPS of -$2.08 for the same period compares with -$5.06 a year ago.
For the current quarter, Royal Caribbean is expected to post earnings of $0.37 per share, indicating a change of +107.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -10.5% over the last 30 days.
Royal Caribbean has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Caesars Entertainment (CZR) Down 12.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Caesars Entertainment (CZR - Free Report) . Shares have lost about 12.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Caesars Entertainment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Caesars’ Q2 Earnings Lag Estimates, Revenues Surpass
Caesars Entertainment, reported mixed second-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top line rose year over year, while the bottom line declined.
Earnings & Revenue Discussion
In the quarter under review, the company posted adjusted earnings per share (EPS) of 16 cents, missing the Zacks Consensus Estimate of 25 cents. In the prior-year quarter, the company reported an adjusted EPS of 48 cents.
Net revenues during the quarter were $2,821 million, beating the Zacks Consensus Estimate of $2,773 million by 1.7%. The top line increased 12.7% on a year-over-year basis.
During the quarter, same-store adjusted EBITDA came in at $978 compared with $1,011 million reported in the prior-year quarter. Same-store adjusted EBITDA, excluding Caesars’ Digital segment, was $1.05 billion during the quarter compared with $1.01 billion reported in the year-ago quarter.
Segmental Performance
During the quarter, net revenues from the Las Vegas segment were $1,142 million compared with $855 million reported in the year-ago quarter. The segment’s adjusted EBITDA was $547 million compared with $423 million reported in the prior-year quarter.
Coming to the Regional segment, net revenues during the quarter were $1,454 million compared with $1,516 million reported in the year-ago quarter. The segment’s adjusted EBITDA totaled $513 million compared with $604 million reported in the prior-year quarter.
During the quarter, net revenues from the Caesars Digital segment came in at $152 million compared with $117 million reported in the prior-year quarter. The segment’s adjusted EBITDA came in at a negative $69 million against $2 million reported in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter were $74 million compared with $56 million reported in the prior-year quarter. The segment’s adjusted EBITDA amounted to $22 million compared with $24 million reported in the prior-year quarter.
Balance Sheet
As of Jun 30, 2022, the company’s cash and cash equivalents were $997 million compared with $814 million as of Mar 31, 2022.
Net debt as of Jun 30, 2022, stood at $13,197 million compared with $13,492 million as of Mar 31, 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -19.79% due to these changes.
VGM Scores
Currently, Caesars Entertainment has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Caesars Entertainment has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Caesars Entertainment belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Royal Caribbean (RCL - Free Report) , has gained 5.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Royal Caribbean reported revenues of $2.18 billion in the last reported quarter, representing a year-over-year change of +4190.4%. EPS of -$2.08 for the same period compares with -$5.06 a year ago.
For the current quarter, Royal Caribbean is expected to post earnings of $0.37 per share, indicating a change of +107.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -10.5% over the last 30 days.
Royal Caribbean has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.