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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 2022 results on Feb 21, 2023, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 60%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of 18 cents per share, indicating an improvement of 84.2% from a loss of $1.14 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $2,817 million, suggesting an increase of 8.9% from the year-ago quarter’s reported figure.
Caesars Entertainment, Inc. Price and EPS Surprise
Let's look at how things have shaped up in the quarter.
Factors to Note
Caesars Entertainment’s fourth-quarter performance is likely to have benefited from pent-up demand, expansion of retail sports betting and property development initiatives. This and the improvement of group and convention trends in Las Vegas and international travel recovery are likely to have aided the company’s performance in the fourth quarter. During the previous quarter’s earnings call, the company revealed that occupancy in Las Vegas reached 94%. Also, it stated that the group room nights are pacing above 2019 levels. With international consumers returning and conventional demand accelerating, the momentum is likely to have continued in the fourth quarter. The Zacks Consensus Estimate for fourth-quarter Las Vegas revenues and regional revenues is pegged at $1,124 million and $1,386 million, respectively, indicating growth of 8.1% and 1.6% from the prior-year quarter’s levels.
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. The Zacks Consensus Estimate for fourth-quarter revenues at Caesars Digital is pegged at $247 million, indicating a rise of 112.9% from $116 million reported in the prior-year quarter.
However, Increased investments in digital business (concerning product enhancements), competitive pricing strategies and lower hold in certain markets are likely to have impacted the company’s performance in the fourth quarter. The rise in utility expenses is likely to have affected margins in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Caesars Entertainment this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Caesars Entertainment has an Earnings ESP of -115.56%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other 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.
OneSpaWorld Holdings Limited (OSW - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #1.
Shares of OneSpaWorld have increased 7.3% in the past year. OSW’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 84.2%.
Monarch Casino & Resort, Inc. (MCRI - Free Report) has an Earnings ESP of +4.12% and a Zacks Rank #3.
Shares of Monarch Casino have increased 6.2% in the past year. MCRI’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 3.7%.
Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +2.53% and a Zacks Rank #3.
Shares of Planet Fitness have declined 16.3% in the past year. PLNT’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 6.6%.
Image: Shutterstock
What's in Store for Caesars Entertainment's (CZR) Q4 Earnings?
Caesars Entertainment, Inc. (CZR - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 21, 2023, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 60%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of 18 cents per share, indicating an improvement of 84.2% from a loss of $1.14 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $2,817 million, suggesting an increase of 8.9% from the year-ago quarter’s reported figure.
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 fourth-quarter performance is likely to have benefited from pent-up demand, expansion of retail sports betting and property development initiatives. This and the improvement of group and convention trends in Las Vegas and international travel recovery are likely to have aided the company’s performance in the fourth quarter. During the previous quarter’s earnings call, the company revealed that occupancy in Las Vegas reached 94%. Also, it stated that the group room nights are pacing above 2019 levels. With international consumers returning and conventional demand accelerating, the momentum is likely to have continued in the fourth quarter. The Zacks Consensus Estimate for fourth-quarter Las Vegas revenues and regional revenues is pegged at $1,124 million and $1,386 million, respectively, indicating growth of 8.1% and 1.6% from the prior-year quarter’s levels.
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. The Zacks Consensus Estimate for fourth-quarter revenues at Caesars Digital is pegged at $247 million, indicating a rise of 112.9% from $116 million reported in the prior-year quarter.
However, Increased investments in digital business (concerning product enhancements), competitive pricing strategies and lower hold in certain markets are likely to have impacted the company’s performance in the fourth quarter. The rise in utility expenses is likely to have affected margins in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Caesars Entertainment this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Caesars Entertainment has an Earnings ESP of -115.56%. 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.
Stocks Poised to Beat Earnings Estimates
Here are some other 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.
OneSpaWorld Holdings Limited (OSW - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #1.
Shares of OneSpaWorld have increased 7.3% in the past year. OSW’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 84.2%.
Monarch Casino & Resort, Inc. (MCRI - Free Report) has an Earnings ESP of +4.12% and a Zacks Rank #3.
Shares of Monarch Casino have increased 6.2% in the past year. MCRI’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 3.7%.
Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +2.53% and a Zacks Rank #3.
Shares of Planet Fitness have declined 16.3% in the past year. PLNT’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 6.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.