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Caesars Entertainment (CZR) Q1 Earnings & Revenues Lag Estimates
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Caesars Entertainment, Inc. (CZR - Free Report) reported drab first-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. Also, the top and the bottom line declined on a year-over-year basis.
Following the results, the diversified gaming and hospitality company’s shares dropped 3% in the after-market trading session on Apr 30, 2024.
Earnings & Revenue Discussion
During the quarter, the company recorded an adjusted loss per share of 55 cents, wider than the Zacks Consensus Estimate of a loss of 3 cents. In the prior-year quarter, the company reported EPS of 9 cents.
Caesars Entertainment, Inc. Price, Consensus and EPS Surprise
Net revenues during the quarter were $2.7 billion, missing the consensus estimate of $2.8 billion by 2.9%. In the prior-year quarter, the company generated net revenues of $2.8 billion.
Segmental Performance
During the first quarter, net revenues in the Las Vegas segment totaled $1.03 billion, down from $1.13 billion in the year-ago quarter. The company registered record occupancy in Las Vegas, driven by the Super Bowl and international visitation for Chinese New Year, which was offset by a lower-than-expected hold. The segment’s adjusted EBITDA amounted to $440 million compared with $533 million in the prior-year quarter.
In the Regional segment, quarterly net revenues were $1.37 billion, down 1.7% year over year. The segment experienced weather-related weakness in January and early February. CZR's new property openings partially offset these negative results. The segment’s adjusted EBITDA reached $433 million compared with $448 million in the prior-year quarter.
First-quarter net revenues in the Caesars Digital segment were $282 million, up 18.5% year over year. Despite lower-than-expected hold in online sports due to unfavorable outcomes for the Super Bowl and March Madness, the segment delivered strong revenue growth. The segment’s adjusted EBITDA totaled $5 million compared with $(4) million in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter totaled $68 million, down from $69 million in the prior-year quarter. The segment’s adjusted EBITDA was $18 million compared with $19 million in the prior-year quarter.
Net revenues in the Corporate and Other segment were $(1) million compared with $3 million in the prior-year period. This segment’s adjusted EBITDA totaled $(43) million compared with $(38) million in the year-ago quarter.
Balance Sheet
As of Mar 31, 2024, Caesars Entertainment’s cash and cash equivalents were $726 million, down from $1 billion as of Dec 31, 2023.
Net debt, as of Mar 31, 2024, was $11.71 billion, up from $11.43 billion as of Dec 31, 2023.
Boyd Gaming Corporation (BYD - Free Report) reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line declined on a year-over-year basis.
During the quarter, the company’s performance was impacted by January's severe winter weather in the Midwest and South and a softer Las Vegas locals market. The combined effect of these challenges fell within the anticipated range, aligning with earlier projections of $20-$25 million in EBITDAR for 2024.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand), solid onboard spending and favorable timing of expenses. The company also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand.
Pool Corporation (POOL - Free Report) reported drab first-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Also, the top and the bottom line declined from the prior-year quarter's figure. During the quarter, the company’s operations were affected by lower pool construction activity, economic pressures and weather-related constraints.
The company raised its annual earnings guidance range to account for year-to-date tax benefits. It expects sales and gross margin trends to improve with the onset of the swimming pool season, aligning with seasonal buying patterns.
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Caesars Entertainment (CZR) Q1 Earnings & Revenues Lag Estimates
Caesars Entertainment, Inc. (CZR - Free Report) reported drab first-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. Also, the top and the bottom line declined on a year-over-year basis.
Following the results, the diversified gaming and hospitality company’s shares dropped 3% in the after-market trading session on Apr 30, 2024.
Earnings & Revenue Discussion
During the quarter, the company recorded an adjusted loss per share of 55 cents, wider than the Zacks Consensus Estimate of a loss of 3 cents. In the prior-year quarter, the company reported EPS of 9 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 $2.7 billion, missing the consensus estimate of $2.8 billion by 2.9%. In the prior-year quarter, the company generated net revenues of $2.8 billion.
Segmental Performance
During the first quarter, net revenues in the Las Vegas segment totaled $1.03 billion, down from $1.13 billion in the year-ago quarter. The company registered record occupancy in Las Vegas, driven by the Super Bowl and international visitation for Chinese New Year, which was offset by a lower-than-expected hold. The segment’s adjusted EBITDA amounted to $440 million compared with $533 million in the prior-year quarter.
In the Regional segment, quarterly net revenues were $1.37 billion, down 1.7% year over year. The segment experienced weather-related weakness in January and early February. CZR's new property openings partially offset these negative results. The segment’s adjusted EBITDA reached $433 million compared with $448 million in the prior-year quarter.
First-quarter net revenues in the Caesars Digital segment were $282 million, up 18.5% year over year. Despite lower-than-expected hold in online sports due to unfavorable outcomes for the Super Bowl and March Madness, the segment delivered strong revenue growth. The segment’s adjusted EBITDA totaled $5 million compared with $(4) million in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter totaled $68 million, down from $69 million in the prior-year quarter. The segment’s adjusted EBITDA was $18 million compared with $19 million in the prior-year quarter.
Net revenues in the Corporate and Other segment were $(1) million compared with $3 million in the prior-year period. This segment’s adjusted EBITDA totaled $(43) million compared with $(38) million in the year-ago quarter.
Balance Sheet
As of Mar 31, 2024, Caesars Entertainment’s cash and cash equivalents were $726 million, down from $1 billion as of Dec 31, 2023.
Net debt, as of Mar 31, 2024, was $11.71 billion, up from $11.43 billion as of Dec 31, 2023.
Zacks Rank
Caesars Entertainment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
Recent Consumer Discretionary Releases
Boyd Gaming Corporation (BYD - Free Report) reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line declined on a year-over-year basis.
During the quarter, the company’s performance was impacted by January's severe winter weather in the Midwest and South and a softer Las Vegas locals market. The combined effect of these challenges fell within the anticipated range, aligning with earlier projections of $20-$25 million in EBITDAR for 2024.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand), solid onboard spending and favorable timing of expenses. The company also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand.
Pool Corporation (POOL - Free Report) reported drab first-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Also, the top and the bottom line declined from the prior-year quarter's figure. During the quarter, the company’s operations were affected by lower pool construction activity, economic pressures and weather-related constraints.
The company raised its annual earnings guidance range to account for year-to-date tax benefits. It expects sales and gross margin trends to improve with the onset of the swimming pool season, aligning with seasonal buying patterns.