Back to top

Image: Bigstock

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

Read MoreHide Full Article

Caesars Entertainment, Inc. (CZR - Free Report) is scheduled to report second-quarter 2022 results on Aug 2, 2022, after the closing bell. In the previous quarter, the company delivered an earnings surprise of 1.9%.

The Trend in Estimate Revision

The Zacks Consensus Estimate for second-quarter earnings is pegged at 25 cents per share, indicating a decline of 47.9% from 48 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at approximately $2,773 million, suggesting an increase of 10.9% 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 look at how things have shaped up in the quarter.

Factors to Note

Caesars Entertainment’s second-quarter performance is likely to have benefited from sports betting expansion, enhanced iCasino offerings and property-rebranding initiatives. This and emphasis on digital business and aggressive customer acquisition efforts (in new markets including New York and Louisiana) is likely to have driven the top line in the to-be-reported quarter.

The strong performance of the Las Vegas properties coupled with improvement in occupancy levels is likely to have aided the company’s performance in the second quarter. During the previous quarter’s earnings call, the company revealed that occupancy in Las Vegas (as of April 2022) was under 97%. Also, it reported a solid group revenue pace backed by pent-up demand (for group travel) and strong booking trends. With convention demand accelerating and measures of cancellations to new bookings declining, the momentum is likely to have continued in the second quarter. Removal of masks and vaccine mandates at specific properties are likely to have added to the upside. The Zacks Consensus Estimate for Las Vegas revenues is pegged at $1,070 million, indicating growth of 25.1% from the prior-year quarter’s levels.

Increased investments in digital business (to support new market launches), competitive pricing strategies and lower hold in certain markets are likely to have impacted the company’s performance in the second quarter.

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 odds of an earnings beat, which is the case here.

Earnings ESP: Caesars Entertainment has an Earnings ESP of +1.82%. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat on Earnings

Here are some other stocks worth considering from the Zacks Consumer Discretionary sector, as our model shows that these have the right combination of elements to beat on earnings this season:

Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +7.11% and a Zacks Rank #2.

Shares of Marriott have increased 6.9% in the past year. MAR’s earnings surpassed the consensus mark in each of the trailing four quarters, the average being 36.2%.

Callaway Golf Company has an Earnings ESP of +2.69% and a Zacks Rank of 2.

Shares of Callaway Golf have declined 32.8% in the past year. ELY’s earnings surpassed the consensus mark in all the trailing four quarters, the average being 955.5%.

Sony Group Corporation (SONY - Free Report) has an Earnings ESP of +4.78% and a Zacks Rank of 3.

Shares of Sony have declined 17.3% in the past year. SONY’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 20.1%.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marriott International, Inc. (MAR) - free report >>

Caesars Entertainment, Inc. (CZR) - free report >>

Sony Corporation (SONY) - free report >>

Published in