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Caesars Entertainment (CZR) Q2 Earnings Top Estimates, Rise Y/Y
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Caesars Entertainment, Inc. (CZR - Free Report) reported solid second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
Despite a tough year-over-year comparison, CZR benefited from strong leisure and casino demand in Las Vegas and solid digital segment performance. Also, improved marketing capabilities and capital projects delivered solid returns.
Earnings & Revenue Discussion
During the quarter, the company recorded adjusted earnings per share (EPS) of 82 cents, beating the Zacks Consensus Estimate of 33 cents. In the prior-year quarter, the company reported an adjusted EPS of 16 cents.
Caesars Entertainment, Inc. Price, Consensus and EPS Surprise
Net revenues during the quarter came in at $2,879 million, beating the Zacks Consensus Estimate of $2,863 million. In the prior-year quarter, the company generated net revenues of $2,821 million.
Segmental Performance
During the second quarter, net revenues in the Las Vegas segment came in at $1,128 million, down compared with $1,142 million reported in the year-ago quarter. Our model predicted the metric to be $1054.6 million. The segment’s adjusted EBITDA amounted to $512 million compared with $547 million reported in the prior-year quarter.
In the Regional segment, net revenues during the quarter came in at $1,461 million, up compared with $1,455 million reported in the year-ago quarter. Our estimate was $1,569.9 million. The segment’s adjusted EBITDA came in at $508 million compared with the $513 million reported in the prior-year quarter.
Second-quarter net revenues in the Caesars Digital segment came in at $216 million, up from $152 million reported in the prior-year quarter. Our estimate was $124.7 million. The segment’s adjusted EBITDA totaled $11 million compared with the $(69) million reported in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter came in at $72 million, down from $74 million reported in the prior-year quarter. Our estimate was $74.3 million. The segment’s adjusted EBITDA came in at $19 million compared with the $22 million reported in the prior-year quarter.
Net revenues in the Corporate and Other segment in the second quarter came in at $2 million, up from $(2) million reported in the prior-year quarter. Our model predicted the metric to be $1.8 million. The segment’s adjusted EBITDA totaled $(43) million compared with the $(35) million reported in the year-ago quarter.
Balance Sheet
As of Jun 30, 2023, the company’s cash and cash equivalents came in at $1,122 million compared with $1,038 million as on Dec 31, 2022.
Net debt, as of Jun 30, 2023, stood at $11,599 million compared with $12,047 million as of Dec 31, 2022.
Zacks Rank & Key Picks
Caesars Entertainment sports a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Trip.com Group’s 2023 sales and EPS suggests increases of 101.6% and 531%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 65.8%, on average. The stock has increased 44.7% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates rises of 34% and 89.3%, respectively, from the year-ago period’s levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) holds a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 28.5%, on average. The stock has surged 176.6% in the past year.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS implies gains of 50.7% and 169.9%, respectively, from the year-ago period’s levels.
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Caesars Entertainment (CZR) Q2 Earnings Top Estimates, Rise Y/Y
Caesars Entertainment, Inc. (CZR - Free Report) reported solid second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
Despite a tough year-over-year comparison, CZR benefited from strong leisure and casino demand in Las Vegas and solid digital segment performance. Also, improved marketing capabilities and capital projects delivered solid returns.
Earnings & Revenue Discussion
During the quarter, the company recorded adjusted earnings per share (EPS) of 82 cents, beating the Zacks Consensus Estimate of 33 cents. In the prior-year quarter, the company reported an adjusted EPS of 16 cents.
Caesars Entertainment, Inc. Price, Consensus and EPS Surprise
Caesars Entertainment, Inc. price-consensus-eps-surprise-chart | Caesars Entertainment, Inc. Quote
Net revenues during the quarter came in at $2,879 million, beating the Zacks Consensus Estimate of $2,863 million. In the prior-year quarter, the company generated net revenues of $2,821 million.
Segmental Performance
During the second quarter, net revenues in the Las Vegas segment came in at $1,128 million, down compared with $1,142 million reported in the year-ago quarter. Our model predicted the metric to be $1054.6 million. The segment’s adjusted EBITDA amounted to $512 million compared with $547 million reported in the prior-year quarter.
In the Regional segment, net revenues during the quarter came in at $1,461 million, up compared with $1,455 million reported in the year-ago quarter. Our estimate was $1,569.9 million. The segment’s adjusted EBITDA came in at $508 million compared with the $513 million reported in the prior-year quarter.
Second-quarter net revenues in the Caesars Digital segment came in at $216 million, up from $152 million reported in the prior-year quarter. Our estimate was $124.7 million. The segment’s adjusted EBITDA totaled $11 million compared with the $(69) million reported in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter came in at $72 million, down from $74 million reported in the prior-year quarter. Our estimate was $74.3 million. The segment’s adjusted EBITDA came in at $19 million compared with the $22 million reported in the prior-year quarter.
Net revenues in the Corporate and Other segment in the second quarter came in at $2 million, up from $(2) million reported in the prior-year quarter. Our model predicted the metric to be $1.8 million. The segment’s adjusted EBITDA totaled $(43) million compared with the $(35) million reported in the year-ago quarter.
Balance Sheet
As of Jun 30, 2023, the company’s cash and cash equivalents came in at $1,122 million compared with $1,038 million as on Dec 31, 2022.
Net debt, as of Jun 30, 2023, stood at $11,599 million compared with $12,047 million as of Dec 31, 2022.
Zacks Rank & Key Picks
Caesars Entertainment sports a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer Discretionary sector are:
Trip.com Group Limited (TCOM - Free Report) flaunts a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 147.9%, on average. The stock has increased 53.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Trip.com Group’s 2023 sales and EPS suggests increases of 101.6% and 531%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 65.8%, on average. The stock has increased 44.7% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates rises of 34% and 89.3%, respectively, from the year-ago period’s levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) holds a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 28.5%, on average. The stock has surged 176.6% in the past year.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS implies gains of 50.7% and 169.9%, respectively, from the year-ago period’s levels.