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Caesars Entertainment's (CZR) Earnings & Revenues Top, Shares Up
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Caesars Entertainment, Inc. (CZR - Free Report) reported impressive third-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Also, the top and the bottom lines increased on a year-over-year basis.
The company’s uptrend was primarily driven by the solid performance of the Regional segment on the back of the opening of two temporary gaming facilities, which are Caesars Virginia and Harrah’s Columbus Nebraska, as well as the reopening of Horseshoe Lake Charles. Also, gaming revenues from the Caesars Digital segment, attributable to additional state launches of its online and retail Caesars Sportsbooks, added to the growth momentum. Additionally, improvements in the year-over-year hotel occupancy rates within the Las Vegas segment bode well, despite the ongoing economic uncertainties.
Following the results, shares of this diversified gaming and hospitality company increased 4.8% in the after-market trading session on Oct 31.
Earnings & Revenue Discussion
During the quarter, the company recorded adjusted earnings per share (EPS) of 34 cents, beating the Zacks Consensus Estimate of earnings of 27 cents per share by 25.9%. In the prior-year quarter, the company reported an adjusted EPS of 24 cents.
Caesars Entertainment, Inc. Price, Consensus and EPS Surprise
Net revenues during the quarter were $2,994 million, beating the consensus estimate of $2,913 million by 2.8%. In the prior-year quarter, the company generated net revenues of $2,887 million.
Segmental Performance
During the third quarter, net revenues in the Las Vegas segment were $1,120 million, up from $1,077 million reported in the year-ago quarter. This segment’s net revenues were lower than our model’s expected value of $1,148.5 million. The segment’s adjusted EBITDA amounted to $482 million compared with $480 million reported in the prior-year quarter.
In the Regional segment, quarterly net revenues were $1,565 million, up from $1,530 million reported in the year-ago quarter. This segment’s net revenues were higher than our expected value of $1,516.7 million. The segment’s adjusted EBITDA reached a record value of $575 million compared with the $570 million reported in the prior-year quarter.
Third-quarter net revenues in the Caesars Digital segment were $215 million, up from $212 million reported in the prior-year quarter. Our estimate for this segment’s net revenues was $158.4 million, which was on the lower side of the reported figure. The segment’s adjusted EBITDA totaled $2 million compared with the $(38) million reported in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter were $98 million, up from $70 million reported in the prior-year quarter. Our estimate for the metric was $77.8 million. The segment’s adjusted EBITDA was $20 million compared with the $22 million reported in the prior-year quarter.
Net revenues in the Corporate and Other segment in the third quarter were $(4) million compared with $(2) million reported in the prior-year quarter. Our model predicted the value to be $(0.5) million. This segment’s adjusted EBITDA totaled $(36) million compared with the $(22) million reported in the year-ago quarter.
Balance Sheet
As of Sep 30, 2023, Caesars Entertainment’s cash and cash equivalents were $841 million, down from $1,038 million reported as of Dec 31, 2022.
Net debt, as of Sep 30, 2023, was $11,614 million, down from $12,047 million as of Dec 31, 2022.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported third-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
The upside was primarily driven by solid cruising demand, improvement in load factors and onboard spending momentum. A rise in close-in demand (at higher prices) and continued strength in onboard revenues added to the positives.
Mattel, Inc. (MAT - Free Report) reported third-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Also, the top and bottom lines increased on a year-over-year basis.
The upside was attributed to the benefits related to the Barbie movie, favorable pricing, savings from the Optimizing for Growth program and cost deflation. However, unfavorable fixed cost absorption and supply-chain costs partially offset the tailwinds.
Hasbro, Inc. (HAS - Free Report) reported mixed third-quarter fiscal 2023 results, wherein earnings came in line with the Zacks Consensus Estimate but revenues missed the same. The top line fell short of the consensus estimate after beating it in the preceding two quarters.
Disappointing Consumer Products and Entertainment revenues hurt the company’s top line, driven by planned license exits, a decline in toy and game volume given the broad category trends, unfavorable pricing and mix along with writers and actors strikes.
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Caesars Entertainment's (CZR) Earnings & Revenues Top, Shares Up
Caesars Entertainment, Inc. (CZR - Free Report) reported impressive third-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Also, the top and the bottom lines increased on a year-over-year basis.
The company’s uptrend was primarily driven by the solid performance of the Regional segment on the back of the opening of two temporary gaming facilities, which are Caesars Virginia and Harrah’s Columbus Nebraska, as well as the reopening of Horseshoe Lake Charles. Also, gaming revenues from the Caesars Digital segment, attributable to additional state launches of its online and retail Caesars Sportsbooks, added to the growth momentum. Additionally, improvements in the year-over-year hotel occupancy rates within the Las Vegas segment bode well, despite the ongoing economic uncertainties.
Following the results, shares of this diversified gaming and hospitality company increased 4.8% in the after-market trading session on Oct 31.
Earnings & Revenue Discussion
During the quarter, the company recorded adjusted earnings per share (EPS) of 34 cents, beating the Zacks Consensus Estimate of earnings of 27 cents per share by 25.9%. In the prior-year quarter, the company reported an adjusted EPS of 24 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 were $2,994 million, beating the consensus estimate of $2,913 million by 2.8%. In the prior-year quarter, the company generated net revenues of $2,887 million.
Segmental Performance
During the third quarter, net revenues in the Las Vegas segment were $1,120 million, up from $1,077 million reported in the year-ago quarter. This segment’s net revenues were lower than our model’s expected value of $1,148.5 million. The segment’s adjusted EBITDA amounted to $482 million compared with $480 million reported in the prior-year quarter.
In the Regional segment, quarterly net revenues were $1,565 million, up from $1,530 million reported in the year-ago quarter. This segment’s net revenues were higher than our expected value of $1,516.7 million. The segment’s adjusted EBITDA reached a record value of $575 million compared with the $570 million reported in the prior-year quarter.
Third-quarter net revenues in the Caesars Digital segment were $215 million, up from $212 million reported in the prior-year quarter. Our estimate for this segment’s net revenues was $158.4 million, which was on the lower side of the reported figure. The segment’s adjusted EBITDA totaled $2 million compared with the $(38) million reported in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter were $98 million, up from $70 million reported in the prior-year quarter. Our estimate for the metric was $77.8 million. The segment’s adjusted EBITDA was $20 million compared with the $22 million reported in the prior-year quarter.
Net revenues in the Corporate and Other segment in the third quarter were $(4) million compared with $(2) million reported in the prior-year quarter. Our model predicted the value to be $(0.5) million. This segment’s adjusted EBITDA totaled $(36) million compared with the $(22) million reported in the year-ago quarter.
Balance Sheet
As of Sep 30, 2023, Caesars Entertainment’s cash and cash equivalents were $841 million, down from $1,038 million reported as of Dec 31, 2022.
Net debt, as of Sep 30, 2023, was $11,614 million, down from $12,047 million as of Dec 31, 2022.
Zacks Rank
Caesars Entertainment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Consumer Discretionary Releases
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported third-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
The upside was primarily driven by solid cruising demand, improvement in load factors and onboard spending momentum. A rise in close-in demand (at higher prices) and continued strength in onboard revenues added to the positives.
Mattel, Inc. (MAT - Free Report) reported third-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Also, the top and bottom lines increased on a year-over-year basis.
The upside was attributed to the benefits related to the Barbie movie, favorable pricing, savings from the Optimizing for Growth program and cost deflation. However, unfavorable fixed cost absorption and supply-chain costs partially offset the tailwinds.
Hasbro, Inc. (HAS - Free Report) reported mixed third-quarter fiscal 2023 results, wherein earnings came in line with the Zacks Consensus Estimate but revenues missed the same. The top line fell short of the consensus estimate after beating it in the preceding two quarters.
Disappointing Consumer Products and Entertainment revenues hurt the company’s top line, driven by planned license exits, a decline in toy and game volume given the broad category trends, unfavorable pricing and mix along with writers and actors strikes.