Caesars Entertainment Corporation (CZR Quick QuoteCZR - Free Report) is scheduled to report third-quarter 2021 results on Nov 2. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 284.6%.

Q3 Estimates

The Zacks Consensus Estimate for the third-quarter earnings is pegged at 8 cents, against a loss of $6.09 reported in the year-ago quarter. In the past seven days, earnings estimates for the quarter have moved up by 2 cents. The consensus mark for revenues stands at nearly $2.66 billion, suggesting a sharp improvement from prior-year quarter’s revenues of $1.38 billion.

Factors to Note

Caesars Entertainment’s third-quarter performance is likely to have benefited from improving occupancy and booking trends backed by solid operational executions. During second-quarter 2021, occupancy in Las Vegas attained 89%, with weekend occupancy reaching 99%. The uptrend is likely to have continued in the third quarter owing to pent-up demand and solid booking trends. It might have witnessed increasing bookings for group and convention room nights. Earlier, the company had stated that it expects the return of the group and convention business and entertainment offerings to drive incremental demand in the Las Vegas market.

Encouraging trends for its regional destination properties may have aided the company’s to-be-reported quarter’s performance. The company has been gaining from expansion of its sports betting business. Margins in the quarter might have benefited from reductions in workforce and marketing costs, synergies from the purchasing power of the combined Caesars organization and limitations on certain lower margin food and beverage offerings.

The Zacks Consensus Estimate for Las Vegas revenues and regional revenues is pegged at $903 million and $1,528 million, suggesting an improvement from $304 million and $1,000, respectively, reported in the year-ago quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict 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 -171.49%. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

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

Golden Entertainment, Inc. (GDEN Quick QuoteGDEN - Free Report) has a Zacks Rank #1 and an Earnings ESP of +51.95%.

Choice Hotels International, Inc. (CHH Quick QuoteCHH - Free Report) has a Zacks Rank #2 and an Earnings ESP of +4.04%.

Accel Entertainment, Inc. (ACEL Quick QuoteACEL - Free Report) has a Zacks Rank #2 and an Earnings ESP of +20.00%.