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

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Caesars Entertainment Corporation (CZR - Free Report) is scheduled to report second-quarter 2021 results on Aug 3. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 21.9%.

Q2 Estimates

The Zacks Consensus Estimate for the second-quarter bottom line is pegged at a loss of 26 cents, compared with a loss of $1.25 reported in the year-ago quarter. In the past seven days, loss estimates for the quarter have narrowed by 6 cents. The consensus mark for revenues stands at nearly $2.3 billion, suggesting a sharp improvement from prior-year quarter’s revenues of $126.5 million.

Factors to Note

Caesars Entertainment’s second-quarter performance is likely to have benefited from improving occupancy and booking trends backed by solid operational executions. During first-quarter 2021, occupancy in Las Vegas reached 63%, the uptrend is likely to have continued in the quarter owing to accelerated pace of vaccinations. On its first-quarter conference call, the company announced that it remains optimistic with respect to its booking trends as it is witnessing increasing bookings for group and convention room nights for the second half of 2021.

Reopening of its properties and pent-up demand might have aided the second-quarter top line. It continues to witness encouraging trends for its regional destination properties. The company has been gaining from expansion of sports betting business.

What the Zacks Model Unveils

Our proven model predicts 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 chances of an earnings beat.

Earnings ESP: Caesars Entertainment has an Earnings ESP of +160.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these too have the right combination of elements to post an earnings beat:

Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of + 26.32% and a Zacks Rank #1.

Hyatt Hotels Corporation (H - Free Report) has an Earnings ESP of +12.24% and a Zacks Rank #3.

Accel Entertainment, Inc. (ACEL - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #3.

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