Caesars Entertainment, Inc. (CZR Quick QuoteCZR - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 20, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 25.9%.

The Trend in Estimate Revision

The Zacks Consensus Estimate is pegged at a loss of 3 cents per share. In the prior-year quarter CZR incurred a loss of 11 cents.

For revenues, the consensus mark is pegged at $2.83 billion, suggesting an increase of 0.4% from the year-ago quarter’s reported figure.

Let's take a look at the factors that have shaped CZR’s performance in the quarter under review.

Factors to Note

It is anticipated that Caesars Entertainment will report a year-over-year increase in revenues for the fourth quarter, driven by pent-up demand, growth of retail sports betting and property development projects. Additionally, robust Group and Convention business, enhanced marketing strategies and a focus on strategic expansion into new markets are expected to have contributed to its performance in the upcoming quarter.

The Zacks Consensus Estimate for fourth-quarter total Las Vegas revenues is pegged at $1.12 billion, down 2.6% from the year-ago levels. However, the consensus estimate for Manage and Branded as well as Regional revenues is pegged at $78 million and $1.37 billion, up 8.3% and 1.1% from the prior-year levels, respectively.

Meanwhile, increased investments in digital business and an uptick in 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, further strains CZR's profitability.

What Our Model Indicates

Our proven model does not concussively predict 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.

Earnings ESP: Earnings ESP for CZR is -235.87%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: CZR currently carries a Zacks Rank #3.

Stocks With Favorable Combination

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to beat estimates this time around.

Six Flags Entertainment Corporation has an Earnings ESP of +21.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

SIX’s earnings for the to-be-reported quarter are expected to decrease 15.6% from the prior-year levels. It reported better-than-expected earnings in one of the trailing four quarters and missed on the other three occasions, the negative surprise being 9.3%, on average.

Cedar Fair, L.P. (FUN Quick QuoteFUN - Free Report) currently has an Earnings ESP of +3.94% and a Zacks Rank of 3.

FUN’s earnings for the to-be-reported quarter are expected to plunge 35.1% from the year-earlier levels. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 67.3%.

Choice Hotels International, Inc. (CHH Quick QuoteCHH - Free Report) currently has an Earnings ESP of +1.48% and a Zacks Rank of 3.

CHH’s earnings for the to-be-reported quarter are expected to increase 7.1% from the prior-year levels. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 5.2%.

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