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Caesars Entertainment (CZR) Q3 Earnings Lag Estimates, Rise Y/Y
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Caesars Entertainment, Inc. (CZR - Free Report) reported mixed third-quarter 2021 results with earnings missing the Zacks Consensus Estimate and revenues beating the same. However, the top and the bottom line increased on a year-over-year basis. Following the results, shares of the company dropped 3.3% during afterhour trading session on Nov 2.
Nevertheless, the company witnessed solid performance of its rebranded Caesars Sportsbook. Also, it will rebrand certain properties from its portfolio in 2022, to further elevate the customer experience.
Tom Reeg, chief executive officer of Caesars Entertainment, stated, "Our third quarter operating results reflect an all-time quarterly EBITDA record in our Las Vegas segment and a new third quarter EBITDA record for our regional segment.”
Earnings & Revenue Discussion
Caesars Entertainment, Inc. Price, Consensus and EPS Surprise
In the quarter under review, adjusted earnings per share (EPS) came in at ($1.08), missing the Zacks Consensus Estimate of 8 cents. In the prior-year quarter, the company had reported an adjusted loss of $6.09 per share.
Net revenues during the quarter came in at $2,685 million, beating the Zacks Consensus Estimate of $2,658 million by 1%. In the prior-year quarter, the company reported net revenues of $1,377 million.
Segmental Performance
During the third quarter, net revenues from Las Vegas segment came in at $ 1,017 million compared with $304 million reported in the year-ago quarter. The segment’s adjusted EBITDA came in at $500 million compared with $43 million reported in the prior-year quarter.
Coming to Regional segment, net revenues during the quarter came in at $1,492 million compared with $1,055 million reported in the year-ago quarter. The segment’s adjusted EBITDA came in at $554 million compared with $350 million reported in the prior-year quarter.
Net revenues from Caesars Digital segment in the third quarter came in at $96 million compared with $39 million in the prior-year quarter. The segment’s adjusted EBITDA came in at $(164) million against $11 million reported in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter came in at $79 million compared with $41 million in the prior-year quarter. The segment’s adjusted EBITDA came in at $22 million compared with $12 million reported in the prior-year quarter.
Balance Sheet
As of Sep 30, 2021, the company’s cash and cash equivalents came in at $1,072 million compared with $1,776 million as on Dec 31, 2020.
Net debt as of Sep 30, 2021, stood at $13,292 million compared with $13,247 million as of Dec 31, 2020.
Other Developments
On the development front, the company stated to have made solid progress with respect to its land-based facility in Lake Charles (expected to finish by fourth-quarter 2022), Caesars Palace entrance in Las Vegas (first quarter 2022) and a new hotel tower in New Orleans. In Indiana, casino expansion at Indiana Grand is underway, with anticipated completions by January 2022. The company initiated $400 million capital plan in Atlantic City to remodel towers with new food and beverage, and entertainment options.
Some better-ranked stocks in the Zacks Consumer Discretionary space include Golden Entertainment, Inc. (GDEN - Free Report) , Camping World Holdings, Inc. (CWH - Free Report) and RCI Hospitality Holdings, Inc. (RICK - Free Report) . Golden Entertainment sports a Zacks rank #1, while Camping World and RCI Hospitality carry a Zacks Rank #2 (Buy).
Golden Entertainment’s 2021 earnings are expected to surge 232.1%.
Camping World has a trailing four-quarter earnings surprise of 70.9%, on average.
RCI Hospitality has three-five-year EPS growth rate of 12%.
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Caesars Entertainment (CZR) Q3 Earnings Lag Estimates, Rise Y/Y
Caesars Entertainment, Inc. (CZR - Free Report) reported mixed third-quarter 2021 results with earnings missing the Zacks Consensus Estimate and revenues beating the same. However, the top and the bottom line increased on a year-over-year basis. Following the results, shares of the company dropped 3.3% during afterhour trading session on Nov 2.
Nevertheless, the company witnessed solid performance of its rebranded Caesars Sportsbook. Also, it will rebrand certain properties from its portfolio in 2022, to further elevate the customer experience.
Tom Reeg, chief executive officer of Caesars Entertainment, stated, "Our third quarter operating results reflect an all-time quarterly EBITDA record in our Las Vegas segment and a new third quarter EBITDA record for our regional segment.”
Earnings & Revenue Discussion
Caesars Entertainment, Inc. Price, Consensus and EPS Surprise
Caesars Entertainment, Inc. price-consensus-eps-surprise-chart | Caesars Entertainment, Inc. Quote
In the quarter under review, adjusted earnings per share (EPS) came in at ($1.08), missing the Zacks Consensus Estimate of 8 cents. In the prior-year quarter, the company had reported an adjusted loss of $6.09 per share.
Net revenues during the quarter came in at $2,685 million, beating the Zacks Consensus Estimate of $2,658 million by 1%. In the prior-year quarter, the company reported net revenues of $1,377 million.
Segmental Performance
During the third quarter, net revenues from Las Vegas segment came in at $ 1,017 million compared with $304 million reported in the year-ago quarter. The segment’s adjusted EBITDA came in at $500 million compared with $43 million reported in the prior-year quarter.
Coming to Regional segment, net revenues during the quarter came in at $1,492 million compared with $1,055 million reported in the year-ago quarter. The segment’s adjusted EBITDA came in at $554 million compared with $350 million reported in the prior-year quarter.
Net revenues from Caesars Digital segment in the third quarter came in at $96 million compared with $39 million in the prior-year quarter. The segment’s adjusted EBITDA came in at $(164) million against $11 million reported in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter came in at $79 million compared with $41 million in the prior-year quarter. The segment’s adjusted EBITDA came in at $22 million compared with $12 million reported in the prior-year quarter.
Balance Sheet
As of Sep 30, 2021, the company’s cash and cash equivalents came in at $1,072 million compared with $1,776 million as on Dec 31, 2020.
Net debt as of Sep 30, 2021, stood at $13,292 million compared with $13,247 million as of Dec 31, 2020.
Other Developments
On the development front, the company stated to have made solid progress with respect to its land-based facility in Lake Charles (expected to finish by fourth-quarter 2022), Caesars Palace entrance in Las Vegas (first quarter 2022) and a new hotel tower in New Orleans. In Indiana, casino expansion at Indiana Grand is underway, with anticipated completions by January 2022. The company initiated $400 million capital plan in Atlantic City to remodel towers with new food and beverage, and entertainment options.
Zacks Rank & Key Picks
Caesars Entertainment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary space include Golden Entertainment, Inc. (GDEN - Free Report) , Camping World Holdings, Inc. (CWH - Free Report) and RCI Hospitality Holdings, Inc. (RICK - Free Report) . Golden Entertainment sports a Zacks rank #1, while Camping World and RCI Hospitality carry a Zacks Rank #2 (Buy).
Golden Entertainment’s 2021 earnings are expected to surge 232.1%.
Camping World has a trailing four-quarter earnings surprise of 70.9%, on average.
RCI Hospitality has three-five-year EPS growth rate of 12%.