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Caesars Entertainment (CZR) Down 2.5% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Caesars Entertainment (CZR - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Caesars Entertainment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Caesars Entertainment Q2 Earnings Top Estimates, Rise Y/Y
Caesars Entertainment 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.
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. 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. 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. 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. 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. 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted 21.09% due to these changes.
VGM Scores
Currently, Caesars Entertainment has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Caesars Entertainment has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Caesars Entertainment (CZR) Down 2.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Caesars Entertainment (CZR - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Caesars Entertainment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Caesars Entertainment Q2 Earnings Top Estimates, Rise Y/Y
Caesars Entertainment 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.
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. 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. 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. 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. 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. 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted 21.09% due to these changes.
VGM Scores
Currently, Caesars Entertainment has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Caesars Entertainment has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.