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.
Why Is Caesars Entertainment (CZR) Down 7.2% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Caesars Entertainment (CZR - Free Report) . Shares have lost about 7.2% 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 drivers.
Caesars Entertainment Q2 Earnings & Revenues Lag Estimates
Caesars Entertainment 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).
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.
Net revenues during the quarter were $2.83 million, missing the consensus estimate of $2.86 million by 0.9%. In the prior-year quarter, the company generated net revenues of $2.88 million.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 32.01% due to these changes.
VGM Scores
At this time, Caesars Entertainment has an average Growth Score of C, a grade with the same score on the momentum front. 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 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 upward for the stock, and the magnitude of these revisions looks promising. Notably, Caesars Entertainment has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Caesars Entertainment (CZR) Down 7.2% 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 7.2% 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 drivers.
Caesars Entertainment Q2 Earnings & Revenues Lag Estimates
Caesars Entertainment 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).
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.
Net revenues during the quarter were $2.83 million, missing the consensus estimate of $2.86 million by 0.9%. In the prior-year quarter, the company generated net revenues of $2.88 million.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 32.01% due to these changes.
VGM Scores
At this time, Caesars Entertainment has an average Growth Score of C, a grade with the same score on the momentum front. 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 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 upward for the stock, and the magnitude of these revisions looks promising. Notably, Caesars Entertainment has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.