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What's in Store for Caesars Entertainment's (CZR) Q4 Earnings?

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Caesars Entertainment, Inc. (CZR - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 22, 2022, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 1,450%.

The trend in Estimate Revision

The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of 81 cents per share, indicating an improvement of 52.4% from a loss of $1.70 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at approximately $2,584 million, suggesting a surge of 72.6% from the year-ago quarter’s reported figure.

Caesars Entertainment, Inc. Price and EPS Surprise


Caesars Entertainment, Inc. Price and EPS Surprise

Caesars Entertainment, Inc. price-eps-surprise | Caesars Entertainment, Inc. Quote


Let's take a look at how things have shaped up in the quarter.

Factors to Note

Caesars Entertainment’s fourth-quarter performance is likely to have benefitted from pent-up demand, expansion of retail sports betting and enhanced iCasino offerings. Emphasis on digital business through aggressive customer acquisition coupled with improvements with respect to its in-app merging technologies is likely to have driven the fourth-quarter top line. Also, focus on partnerships and property development bodes well.

The strong performance of the regional destination properties coupled with improvement in occupancy levels is likely to have aided the company’s performance in the fourth quarter. During the previous quarter earnings call, the company revealed that occupancy in Las Vegas reached 89%, with weekend occupancy attained 97%. Although group attrition remained at higher levels, it witnessed the return of conventions to Las Vegas. With the virus numbers subsiding, the momentum is likely to have persisted in the fourth quarter as well. The Zacks Consensus Estimate for Las Vegas revenues and regional revenues is pegged at $989 million and $1,377 million, respectively, indicating growth of 121.3% and 45.1% from the prior-year quarter’s levels.

However, increased investments in odds and profit boost, competitive pricing strategies and lower hold in certain markets are likely to have impacted the company’s performance in the fourth quarter. This along with fluctuations in positive COVID-19 cases, new variants and the efficacy and acceptance of available vaccines might have influenced the company’s operations in the to-be-reported 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 odds of an earnings beat. But that's not the case here.

Earnings ESP: Caesars Entertainment has an Earnings ESP of +21.90%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #4 (Sell).

Other Stocks Poised to Beat Earnings Estimates

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

PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +38.68% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of AGS have gained 1.8% in the past three months. AGS’ earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 33.3%.

NeoGames S.A. (NGMS - Free Report) has an Earnings ESP of +15.79% and a Zacks Rank #3.

Shares of NeoGames have declined 27.1% in the past year. NGMS’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 165.8%.

Vail Resorts, Inc. (MTN - Free Report) has an Earnings ESP of +5.48% and a Zacks Rank #3.

Shares of Vail Resorts have dropped 13.7% in the past year. MTN’s earnings topped the consensus mark in all of the trailing four quarters, the average surprise being 19%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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