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What's in Store for Caesars Entertainment (CZR) Q2 Earnings?

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Caesars Entertainment Corporation (CZR - Free Report) is scheduled to report second-quarter fiscal 2019 results on Aug 5. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 68.4%. It also reported a bottom-line miss in two of the trailing four quarters.

How Are Estimates Faring?

The Zacks Consensus Estimate for the second quarter is pegged at a loss of 3 cents, indicating a decline from earnings of 4 cents registered in the year-ago quarter. Notably, the company’s earnings estimate for the quarter has been stable over the past 30 days. For quarterly revenues, the consensus mark is pinned at nearly $2,197 million, suggesting a 3.7% increase from the prior-year quarter reported figure.

Let’s delve deeper to find out how the company’s top and bottom lines will shape up in the upcoming quarterly release.

Factors at Play

Caesars Entertainment top line in the second quarter is likely to be driven by robust consumer demand environment in Las Vegas and the company’s focus on operation execution. Revenues from Las Vegas are consistently benefiting from strong gaming, hotel and food and beverages business. The acquisition of Centaur Corporation is also driving the company’s revenues.

Expansion of the company’s sport betting business also bodes well. During the first quarter of  2009, the company had launched a new sportsbook at Harrah's Philadelphia Casino and Racetrack.

However, higher costs due to investments in technology and sports sponsorships are likely to hurt the company’s bottom line in the quarter to be reported. Moreover, the tough competitive environment in Atlantic City remains a concern.

Caesars Entertainment Corporation Price and EPS Surprise

What Does the Zacks Model Unveil?

Our proven model does not show that Caesars Entertainment is likely to beat on earnings in second-quarter 2019. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Caesars Entertainment has an Earnings ESP of -60.71% and a Zacks Rank #3.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to come up with an earnings beat in the to-be-reported quarter:

SeaWorld has an Earnings ESP of +11.01% and a Zacks Rank #2. The company is scheduled to report quarterly numbers on Aug 6.

Callaway Golf has an Earnings ESP of +2.97% and a Zacks Rank #1. The company is scheduled to report quarterly numbers on Aug 8.

Wynn Resorts (WYNN - Free Report) has a Zacks Rank #3 and an Earnings ESP of +2.65%. The company is scheduled to report quarterly numbers on Aug 6.

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