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Why Is Caesars Entertainment (CZR) Down 11.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for Caesars Entertainment (CZR - Free Report) . Shares have lost about 11.6% 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 its most recent earnings report in order to get a better handle on the important drivers.
Caesars Entertainment Q1 Earnings & Revenues Lag Estimates
Caesars Entertainment reported drab first-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. Also, the top and the bottom line declined on a year-over-year basis.
Earnings & Revenue Discussion
During the quarter, the company recorded an adjusted loss per share of 55 cents, wider than the Zacks Consensus Estimate of a loss of 3 cents. In the prior-year quarter, the company reported EPS of 9 cents.
Net revenues during the quarter were $2.7 billion, missing the consensus estimate of $2.8 billion by 2.9%. In the prior-year quarter, the company generated net revenues of $2.8 billion.
Segmental Performance
During the first quarter, net revenues in the Las Vegas segment totaled $1.03 billion, down from $1.13 billion in the year-ago quarter. The company registered record occupancy in Las Vegas, driven by the Super Bowl and international visitation for Chinese New Year, which was offset by a lower-than-expected hold. The segment’s adjusted EBITDA amounted to $440 million compared with $533 million in the prior-year quarter.
In the Regional segment, quarterly net revenues were $1.37 billion, down 1.7% year over year. The segment experienced weather-related weakness in January and early February. CZR's new property openings partially offset these negative results. The segment’s adjusted EBITDA reached $433 million compared with $448 million in the prior-year quarter.
First-quarter net revenues in the Caesars Digital segment were $282 million, up 18.5% year over year. Despite lower-than-expected hold in online sports due to unfavorable outcomes for the Super Bowl and March Madness, the segment delivered strong revenue growth. The segment’s adjusted EBITDA totaled $5 million compared with $(4) million in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter totaled $68 million, down from $69 million in the prior-year quarter. The segment’s adjusted EBITDA was $18 million compared with $19 million in the prior-year quarter.
Net revenues in the Corporate and Other segment were $(1) million compared with $3 million in the prior-year period. This segment’s adjusted EBITDA totaled $(43) million compared with $(38) million in the year-ago quarter.
Balance Sheet
As of Mar 31, 2024, Caesars Entertainment’s cash and cash equivalents were $726 million, down from $1 billion as of Dec 31, 2023.
Net debt, as of Mar 31, 2024, was $11.71 billion, up from $11.43 billion as of Dec 31, 2023.
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 -39.48% due to these changes.
VGM Scores
At this time, Caesars Entertainment has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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. Notably, Caesars Entertainment has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Caesars Entertainment is part of the Zacks Leisure and Recreation Services industry. Over the past month, Royal Caribbean (RCL - Free Report) , a stock from the same industry, has gained 7.6%. The company reported its results for the quarter ended March 2024 more than a month ago.
Royal Caribbean reported revenues of $3.73 billion in the last reported quarter, representing a year-over-year change of +29.2%. EPS of $1.77 for the same period compares with -$0.23 a year ago.
For the current quarter, Royal Caribbean is expected to post earnings of $2.69 per share, indicating a change of +47.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.
Royal Caribbean has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Why Is Caesars Entertainment (CZR) Down 11.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Caesars Entertainment (CZR - Free Report) . Shares have lost about 11.6% 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 its most recent earnings report in order to get a better handle on the important drivers.
Caesars Entertainment Q1 Earnings & Revenues Lag Estimates
Caesars Entertainment reported drab first-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. Also, the top and the bottom line declined on a year-over-year basis.
Earnings & Revenue Discussion
During the quarter, the company recorded an adjusted loss per share of 55 cents, wider than the Zacks Consensus Estimate of a loss of 3 cents. In the prior-year quarter, the company reported EPS of 9 cents.
Net revenues during the quarter were $2.7 billion, missing the consensus estimate of $2.8 billion by 2.9%. In the prior-year quarter, the company generated net revenues of $2.8 billion.
Segmental Performance
During the first quarter, net revenues in the Las Vegas segment totaled $1.03 billion, down from $1.13 billion in the year-ago quarter. The company registered record occupancy in Las Vegas, driven by the Super Bowl and international visitation for Chinese New Year, which was offset by a lower-than-expected hold. The segment’s adjusted EBITDA amounted to $440 million compared with $533 million in the prior-year quarter.
In the Regional segment, quarterly net revenues were $1.37 billion, down 1.7% year over year. The segment experienced weather-related weakness in January and early February. CZR's new property openings partially offset these negative results. The segment’s adjusted EBITDA reached $433 million compared with $448 million in the prior-year quarter.
First-quarter net revenues in the Caesars Digital segment were $282 million, up 18.5% year over year. Despite lower-than-expected hold in online sports due to unfavorable outcomes for the Super Bowl and March Madness, the segment delivered strong revenue growth. The segment’s adjusted EBITDA totaled $5 million compared with $(4) million in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter totaled $68 million, down from $69 million in the prior-year quarter. The segment’s adjusted EBITDA was $18 million compared with $19 million in the prior-year quarter.
Net revenues in the Corporate and Other segment were $(1) million compared with $3 million in the prior-year period. This segment’s adjusted EBITDA totaled $(43) million compared with $(38) million in the year-ago quarter.
Balance Sheet
As of Mar 31, 2024, Caesars Entertainment’s cash and cash equivalents were $726 million, down from $1 billion as of Dec 31, 2023.
Net debt, as of Mar 31, 2024, was $11.71 billion, up from $11.43 billion as of Dec 31, 2023.
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 -39.48% due to these changes.
VGM Scores
At this time, Caesars Entertainment has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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. Notably, Caesars Entertainment has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Caesars Entertainment is part of the Zacks Leisure and Recreation Services industry. Over the past month, Royal Caribbean (RCL - Free Report) , a stock from the same industry, has gained 7.6%. The company reported its results for the quarter ended March 2024 more than a month ago.
Royal Caribbean reported revenues of $3.73 billion in the last reported quarter, representing a year-over-year change of +29.2%. EPS of $1.77 for the same period compares with -$0.23 a year ago.
For the current quarter, Royal Caribbean is expected to post earnings of $2.69 per share, indicating a change of +47.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.
Royal Caribbean has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.