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In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 148.5% and 0.6%, respectively. Earnings and revenues increased 412.5% and 2.1% from the year-ago quarter’s figures, respectively.
Notably, CZR surpassed the earnings estimates mark in all the last four quarters, the average surprise being 74.3%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased to 27 cents from 24 cents over the past 30 days. The estimated figure indicates an improvement of 12.5% from 24 cents reported in the year-ago quarter.
Caesars Entertainment, Inc. Price and EPS Surprise
The consensus mark for revenues is pegged at $2.91 billion, suggesting an increase of 0.9% from the prior-year quarter’s reported figure.
Factors to Note
Caesars Entertainment’s third-quarter top line is expected to have increased year over year on the back of pent-up demand, the expansion of retail sports betting and property development initiatives. Also, strong Group and Convention business, improved marketing capabilities and the emphasis on strategic expansion into new markets are likely to have aided the company’s performance in the to-be-reported quarter.
Per our model, third-quarter total Las Vegas revenues are likely to increase 6.6% year over year to $1,148.5 million. We expect Manage and Branded revenues to increase 11.2% year over year to $77.8 million in the to-be-reported quarter. However, we expect Regional revenues to decline 0.9% year over year to $1,516.7 million.
Meanwhile, increased investments in digital business and increased operating expenses are likely to have hurt the company’s bottom line in the to-be-reported quarter. Inflationary pressure, primarily in food and beverage and hotel expenses and interest rate hikes, further strains CZR's profitability. Our model predicts total operating expenses in the third quarter to increase 1.3% year over year to $2,257.3 million.
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. This is exactly the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Caesars Entertainment has an Earnings ESP of +10.35% and carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these, too, have the right combination of elements to deliver an earnings beat this time around.
Shares of MGM Resorts have improved 0.3% in the past year. MGM’s earnings surpassed the consensus mark in three of the four quarters and missed once, the average surprise being 105.7%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #3.
Shares of Marriott have jumped 20.6% in the past year. MAR’s earnings outpaced the consensus mark in each of the trailing four quarters, the average surprise being 5.5%.
Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #2.
Shares of Hilton have climbed 13% in the past year. HLT’s earnings outshined the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 11.3%.
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Caesars Entertainment (CZR) to Post Q3 Earnings: What's in Store?
Caesars Entertainment, Inc. (CZR - Free Report) is scheduled to report third-quarter 2023 results on Oct 31, 2023, after market close.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 148.5% and 0.6%, respectively. Earnings and revenues increased 412.5% and 2.1% from the year-ago quarter’s figures, respectively.
Notably, CZR surpassed the earnings estimates mark in all the last four quarters, the average surprise being 74.3%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased to 27 cents from 24 cents over the past 30 days. The estimated figure indicates an improvement of 12.5% from 24 cents reported in the year-ago quarter.
Caesars Entertainment, Inc. Price and EPS Surprise
Caesars Entertainment, Inc. price-eps-surprise | Caesars Entertainment, Inc. Quote
The consensus mark for revenues is pegged at $2.91 billion, suggesting an increase of 0.9% from the prior-year quarter’s reported figure.
Factors to Note
Caesars Entertainment’s third-quarter top line is expected to have increased year over year on the back of pent-up demand, the expansion of retail sports betting and property development initiatives. Also, strong Group and Convention business, improved marketing capabilities and the emphasis on strategic expansion into new markets are likely to have aided the company’s performance in the to-be-reported quarter.
Per our model, third-quarter total Las Vegas revenues are likely to increase 6.6% year over year to $1,148.5 million. We expect Manage and Branded revenues to increase 11.2% year over year to $77.8 million in the to-be-reported quarter. However, we expect Regional revenues to decline 0.9% year over year to $1,516.7 million.
Meanwhile, increased investments in digital business and increased operating expenses are likely to have hurt the company’s bottom line in the to-be-reported quarter. Inflationary pressure, primarily in food and beverage and hotel expenses and interest rate hikes, further strains CZR's profitability. Our model predicts total operating expenses in the third quarter to increase 1.3% year over year to $2,257.3 million.
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. This is exactly the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Caesars Entertainment has an Earnings ESP of +10.35% and carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these, too, have the right combination of elements to deliver an earnings beat this time around.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of MGM Resorts have improved 0.3% in the past year. MGM’s earnings surpassed the consensus mark in three of the four quarters and missed once, the average surprise being 105.7%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #3.
Shares of Marriott have jumped 20.6% in the past year. MAR’s earnings outpaced the consensus mark in each of the trailing four quarters, the average surprise being 5.5%.
Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #2.
Shares of Hilton have climbed 13% in the past year. HLT’s earnings outshined the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 11.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.