It has been about a month since the last earnings report for Caesars Entertainment (CZR Quick QuoteCZR - Free Report) . Shares have added about 19.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Caesars Entertainment due for a pullback? 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 Top Estimates

Caesars Entertainment reported second-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Moreover, the top and the bottom line increased on a year-over-year basis. Notably, the company benefitted from solid contributions from regional and Las Vegas markets.

During the second quarter, the company closed the William Hill acquisition. It also announced rebranding of its sports betting operations. To this end, the company launched a new segment — Caesars Digital. This involves operations with respect to sports betting, iGaming and poker.

Earnings & Revenues Discussion

In the quarter under review, adjusted earnings per share came in at 48 cents, which surpassed the Zacks Consensus Estimate of 26 cents. In the prior-year quarter, the company had reported adjusted loss of $1.25 per share.

Net revenues during the quarter came in at $2,502 million, beating the Zacks Consensus Estimate of $2,288 million. In the prior-year quarter, the company reported net revenues of $127 million.

Segmental Performance

During the second quarter, net revenues from Las Vegas segment came in at $855 million. The segment’s adjusted EBITDA came in at $423 million.

Coming to Regional segment, net revenues during the quarter came in at $1,490 million, compared with $114 million reported in the year-ago quarter. The segment’s adjusted EBITDA came in at $602 million against $(8) million reported in the prior-year quarter.

Net revenues from Caesars Digital segment in the second quarter came in at $86 million compared with $11 million in the prior-year quarter. The segment’s adjusted EBITDA came in at $(5) million against $5 million reported in the year-ago quarter.

In the Managed and International segment, net revenues during the second quarter came in at $66 million. The segment’s adjusted EBITDA came in at $26 million.

Balance Sheet

As of Jun 30, 2021, the company’s cash and cash equivalents came in at $ 1,128 million compared with $1,776 million as on Dec 31, 2020.

Net debt as of Jun 30, 2021, stood at $13,545 million compared with $13,247 million as of Dec 31, 2020.

Other Developments

On the development front, the company is working on its new hotel tower and property upgrades in New Orleans as well as remodeling the Caesars Palace entrance in Las Vegas. In Indiana, casino expansion at Indiana Grand is underway, with anticipated completions by January 2022. Also, the company stated that it is progressing with the construction of its new land-based facility in Lake Charles, the completion of which is estimated by the second half of 2022.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 608.33% due to these changes.

VGM Scores

Currently, Caesars Entertainment has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. 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.