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Caesars Entertainment (CZR) to Post Q2 Earnings: What's in Store?
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Caesars Entertainment, Inc. (CZR - Free Report) is scheduled to report second-quarter 2024 results on Jul 30, after the closing bell. In the last reported quarter, the company reported a negative earnings surprise of 1,733.3%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased to 14 cents from 19 cents over the past 30 days. The estimated figure indicates a decline from earnings of 82 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $2.86 billion, suggesting a fall of 0.6% from the year-ago quarter’s reported figure.
Caesars Entertainment, Inc. Price and EPS Surprise
Let's look at the factors that have shaped CZR’s performance in the quarter under review.
Factors to Note
Caesars Entertainment’s top and bottom lines are expected to have declined year over year in the second quarter of 2024 due to constant disruptions associated with weather and construction. Economic factors affecting discretionary spending, such as higher inflation, interest rates and global hostilities, are likely to have affected the company's performance in the to-be-reported quarter.
Also, inflationary pressure, primarily in food and beverage and hotel expenses, further strains CZR's profitability. Furthermore, the bottom line is likely to have affected increased property openings and ongoing investments in new projects.
The Zacks Consensus Estimate for second-quarter total Las Vegas revenues is pegged at $1.10 billion, indicating a decline of 2.7% from the year-ago levels. Total Regional revenues are pegged at $1.43 billion, suggesting a decline of 2.4% from the year-ago levels. The consensus estimate for Manage and Branded revenues is pegged at $71.6 million, indicating a 0.6% decrease from the prior-year levels.
However, CZR is likely to have benefited from improving occupancy, strategic partnerships and increased sports betting volumes. Also, an increased focus on digital initiatives and significant tech enhancements to boost product offerings and drive better customer engagement is likely to have aided the company's performance in the second quarter. The Zacks Consensus Estimate for second-quarter total Caesars Digital revenues is pegged at $255.4 million, indicating an 18.2% decrease from the year-ago levels.
Growth of retail sports betting and property development projects are likely to have boosted the company’s top line in the to-be-reported quarter. The consensus estimate for total casino revenues is pegged at $1.6 billion, suggesting an increase of 4.3% from the prior-year levels.
Strength in the Group and Convention business, improved marketing capabilities and the emphasis on strategic expansion into new markets are likely to have aided the company’s performance in the to-be-reported quarter.
What Our Model Indicates
Our proven model does not concussively 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.
Earnings ESP: Earnings ESP for CZR is -2.94%. 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 sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank of 3 at present.
HLT is expected to register a 13.5% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 5%.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +15.35% and a Zacks Rank of 3.
MGM’s earnings for the to-be-reported quarter are expected to increase 11.9%. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 27.3%.
Skillz Inc. (SKLZ - Free Report) currently has an Earnings ESP of +6.84% and a Zacks Rank of 3.
SKLZ’s earnings for the to-be-reported quarter are expected to increase 16%. It reported better-than-expected earnings in two of the trailing four quarters and missed on one occasion, the average surprise being 1.6%.
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Caesars Entertainment (CZR) to Post Q2 Earnings: What's in Store?
Caesars Entertainment, Inc. (CZR - Free Report) is scheduled to report second-quarter 2024 results on Jul 30, after the closing bell. In the last reported quarter, the company reported a negative earnings surprise of 1,733.3%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased to 14 cents from 19 cents over the past 30 days. The estimated figure indicates a decline from earnings of 82 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $2.86 billion, suggesting a fall of 0.6% 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 look at the factors that have shaped CZR’s performance in the quarter under review.
Factors to Note
Caesars Entertainment’s top and bottom lines are expected to have declined year over year in the second quarter of 2024 due to constant disruptions associated with weather and construction. Economic factors affecting discretionary spending, such as higher inflation, interest rates and global hostilities, are likely to have affected the company's performance in the to-be-reported quarter.
Also, inflationary pressure, primarily in food and beverage and hotel expenses, further strains CZR's profitability. Furthermore, the bottom line is likely to have affected increased property openings and ongoing investments in new projects.
The Zacks Consensus Estimate for second-quarter total Las Vegas revenues is pegged at $1.10 billion, indicating a decline of 2.7% from the year-ago levels. Total Regional revenues are pegged at $1.43 billion, suggesting a decline of 2.4% from the year-ago levels. The consensus estimate for Manage and Branded revenues is pegged at $71.6 million, indicating a 0.6% decrease from the prior-year levels.
However, CZR is likely to have benefited from improving occupancy, strategic partnerships and increased sports betting volumes. Also, an increased focus on digital initiatives and significant tech enhancements to boost product offerings and drive better customer engagement is likely to have aided the company's performance in the second quarter. The Zacks Consensus Estimate for second-quarter total Caesars Digital revenues is pegged at $255.4 million, indicating an 18.2% decrease from the year-ago levels.
Growth of retail sports betting and property development projects are likely to have boosted the company’s top line in the to-be-reported quarter. The consensus estimate for total casino revenues is pegged at $1.6 billion, suggesting an increase of 4.3% from the prior-year levels.
Strength in the Group and Convention business, improved marketing capabilities and the emphasis on strategic expansion into new markets are likely to have aided the company’s performance in the to-be-reported quarter.
What Our Model Indicates
Our proven model does not concussively 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.
Earnings ESP: Earnings ESP for CZR is -2.94%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CZR currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank of 3 at present.
HLT is expected to register a 13.5% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 5%.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +15.35% and a Zacks Rank of 3.
MGM’s earnings for the to-be-reported quarter are expected to increase 11.9%. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 27.3%.
Skillz Inc. (SKLZ - Free Report) currently has an Earnings ESP of +6.84% and a Zacks Rank of 3.
SKLZ’s earnings for the to-be-reported quarter are expected to increase 16%. It reported better-than-expected earnings in two of the trailing four quarters and missed on one occasion, the average surprise being 1.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.