We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Caesars Entertainment (CZR) Q2 Earnings & Revenues Lag Estimates
Read MoreHide Full Article
Caesars Entertainment, Inc. (CZR - Free Report) reported second-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.
Although the regional segment saw competition in new markets, the Las Vegas segment performed well with record same-store revenues, high hotel occupancy and peak Average Daily Rate (ADR).
Following the results, the diversified gaming and hospitality company’s shares increased 3.8% in the after-market trading session on Jul 30, 2024.
The company remains optimistic for the rest of 2024, driven by strong operating trends in the Las Vegas and Caesars Digital segments. The outlook is further supported by the upcoming opening of the permanent facility in Danville and a $430-million investment in the newly-rebranded Caesars New Orleans property.
Earnings & Revenue Discussion
During the quarter, Caesars reported breakeven earnings missing the Zacks Consensus Estimate of 14 cents. In the prior-year quarter, the company reported an adjusted EPS of 82 cents.
Caesars Entertainment, Inc. Price, Consensus and EPS Surprise
Net revenues during the quarter were $2.83 billion, missing the consensus estimate of $2.86 billion by 0.9%. In the prior-year quarter, the company generated net revenues of $2.88 billion.
Segmental Performance
During the second quarter, net revenues in the Las Vegas segment totaled $1.1 billion, down from $1.13 billion in the year-ago quarter. The segment’s adjusted EBITDA amounted to $514 million, up from $512 million in the prior-year quarter. The segment benefited from record same-store revenues, hotel occupancy and ADR.
In the Regional segment, quarterly net revenues were $1.38 billion, down 5.2% year over year. The segment experienced competition in new markets. This was partially offset by the temporary facility in Danville, VA, and the property in Columbus, NE. The segment’s adjusted EBITDA reached $469 million, down from $508 million in the prior-year quarter.
Second-quarter net revenues in the Caesars Digital segment were $276 million, up 27.8% year over year. The segment’s adjusted EBITDA totaled $40 million, up from $11 million in the year-ago quarter. The upside was backed by strong revenue growth and solid flow-through.
In the Managed and Branded segment, net revenues during the quarter totaled $70 million, down from $72 million in the prior-year quarter. The segment’s adjusted EBITDA was $17 million, down from $19 million in the prior-year quarter.
Net revenues in the Corporate and Other segment were $(2) million against $2 million in the prior-year period. This segment’s adjusted EBITDA totaled $(40) million compared with $(43) million in the year-ago quarter.
Balance Sheet
As of Jun 30, 2024, CZR’s cash and cash equivalents were $830 million, down from $1 billion as of Dec 31, 2023.
Net debt, as of Jun 30, 2024, was $11.60 billion, up from $11.43 billion as of Dec 31, 2023.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, which missed the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. However, the bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year at constant currency. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. RCL benefited from stronger pricing on close-in demand and continued strength in onboard revenue.
During the quarter, the company achieved its Trifecta financial goals (18 months ahead of schedule), strengthened its balance sheet and reinstated dividends, enhancing shareholders’ value. The company's board of directors declared a quarterly dividend of $0.40 per share, payable on Oct 11, 2024, to shareholders of record at the close of business on Sep 20, 2024.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Caesars Entertainment (CZR) Q2 Earnings & Revenues Lag Estimates
Caesars Entertainment, Inc. (CZR - Free Report) reported second-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.
Although the regional segment saw competition in new markets, the Las Vegas segment performed well with record same-store revenues, high hotel occupancy and peak Average Daily Rate (ADR).
Following the results, the diversified gaming and hospitality company’s shares increased 3.8% in the after-market trading session on Jul 30, 2024.
The company remains optimistic for the rest of 2024, driven by strong operating trends in the Las Vegas and Caesars Digital segments. The outlook is further supported by the upcoming opening of the permanent facility in Danville and a $430-million investment in the newly-rebranded Caesars New Orleans property.
Earnings & Revenue Discussion
During the quarter, Caesars reported breakeven earnings missing the Zacks Consensus Estimate of 14 cents. In the prior-year quarter, the company reported an adjusted EPS of 82 cents.
Caesars Entertainment, Inc. Price, Consensus and EPS Surprise
Caesars Entertainment, Inc. price-consensus-eps-surprise-chart | Caesars Entertainment, Inc. Quote
Net revenues during the quarter were $2.83 billion, missing the consensus estimate of $2.86 billion by 0.9%. In the prior-year quarter, the company generated net revenues of $2.88 billion.
Segmental Performance
During the second quarter, net revenues in the Las Vegas segment totaled $1.1 billion, down from $1.13 billion in the year-ago quarter. The segment’s adjusted EBITDA amounted to $514 million, up from $512 million in the prior-year quarter. The segment benefited from record same-store revenues, hotel occupancy and ADR.
In the Regional segment, quarterly net revenues were $1.38 billion, down 5.2% year over year. The segment experienced competition in new markets. This was partially offset by the temporary facility in Danville, VA, and the property in Columbus, NE. The segment’s adjusted EBITDA reached $469 million, down from $508 million in the prior-year quarter.
Second-quarter net revenues in the Caesars Digital segment were $276 million, up 27.8% year over year. The segment’s adjusted EBITDA totaled $40 million, up from $11 million in the year-ago quarter. The upside was backed by strong revenue growth and solid flow-through.
In the Managed and Branded segment, net revenues during the quarter totaled $70 million, down from $72 million in the prior-year quarter. The segment’s adjusted EBITDA was $17 million, down from $19 million in the prior-year quarter.
Net revenues in the Corporate and Other segment were $(2) million against $2 million in the prior-year period. This segment’s adjusted EBITDA totaled $(40) million compared with $(43) million in the year-ago quarter.
Balance Sheet
As of Jun 30, 2024, CZR’s cash and cash equivalents were $830 million, down from $1 billion as of Dec 31, 2023.
Net debt, as of Jun 30, 2024, was $11.60 billion, up from $11.43 billion as of Dec 31, 2023.
Zacks Rank
Caesars Entertainment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, which missed the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. However, the bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year at constant currency. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. RCL benefited from stronger pricing on close-in demand and continued strength in onboard revenue.
During the quarter, the company achieved its Trifecta financial goals (18 months ahead of schedule), strengthened its balance sheet and reinstated dividends, enhancing shareholders’ value. The company's board of directors declared a quarterly dividend of $0.40 per share, payable on Oct 11, 2024, to shareholders of record at the close of business on Sep 20, 2024.