We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Caesars Entertainment has not been able to rake in profits for a long time owing to its high debt levels which have been driving interest expenses. We expect the trend to continue in the second quarter.
Notably, last year, Caesars Entertainment’s bankrupt unit Caesars Entertainment Operating Co. (CEOC) filed for reorganization under Chapter 11 of the United States Bankruptcy Code.
However, despite following the restructuring plan, the company has not been able to improve its debt position. In fact, costs related to these initiatives have hurt profits and we expect the same to affect results in the to-be-reported quarter.
Nevertheless, this gaming company is spending heavily on renovation of properties to boost traffic. It is enhancing hospitality and entertainment assets in the high-growth markets, such as Las Vegas which has been witnessing strong visitation pattern and high occupancy rates. Given the optimism surrounding tourism in this region, we expect the properties to augment second-quarter revenues.
Investments in new and exciting hospitality amenities and the spending on its Caesars Interactive Entertainment (“CIE”) unit should further boost results. Meanwhile, efforts to cut expenses through cost saving initiatives should continue to aid margin expansion in the to-be-reported quarter.
Stocks to Consider
Here are some companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Red Lion Hotels Corporation has an earnings ESP of +100.00% and a Zacks Rank #3 (Hold).
Vista Outdoor Inc. (VSTO - Free Report) has an earnings ESP of +2.94% and a Zacks Rank #3.
Wynn Resorts Ltd. (WYNN - Free Report) has an earnings ESP of +1.03% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Caesars Entertainment (CZR) Q2 Earnings: What's in Store?
Caesars Entertainment Corporation (CZR - Free Report) is scheduled to report second-quarter 2016 financial numbers on Aug 2, after market close.
Notably, the company’s trailing four-quarter average earnings surprise stands at a negative 20.02%.
Let’s see how things are shaping up for this announcement.
CAESARS ENTERTN Price and EPS Surprise
CAESARS ENTERTN Price and EPS Surprise | CAESARS ENTERTN Quote
Factors Likely to Influence this Quarter
Caesars Entertainment has not been able to rake in profits for a long time owing to its high debt levels which have been driving interest expenses. We expect the trend to continue in the second quarter.
Notably, last year, Caesars Entertainment’s bankrupt unit Caesars Entertainment Operating Co. (CEOC) filed for reorganization under Chapter 11 of the United States Bankruptcy Code.
However, despite following the restructuring plan, the company has not been able to improve its debt position. In fact, costs related to these initiatives have hurt profits and we expect the same to affect results in the to-be-reported quarter.
Nevertheless, this gaming company is spending heavily on renovation of properties to boost traffic. It is enhancing hospitality and entertainment assets in the high-growth markets, such as Las Vegas which has been witnessing strong visitation pattern and high occupancy rates. Given the optimism surrounding tourism in this region, we expect the properties to augment second-quarter revenues.
Investments in new and exciting hospitality amenities and the spending on its Caesars Interactive Entertainment (“CIE”) unit should further boost results. Meanwhile, efforts to cut expenses through cost saving initiatives should continue to aid margin expansion in the to-be-reported quarter.
Stocks to Consider
Here are some companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Red Lion Hotels Corporation has an earnings ESP of +100.00% and a Zacks Rank #3 (Hold).
Vista Outdoor Inc. (VSTO - Free Report) has an earnings ESP of +2.94% and a Zacks Rank #3.
Wynn Resorts Ltd. (WYNN - Free Report) has an earnings ESP of +1.03% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>