Caesars Entertainment, Inc. (CZR Quick QuoteCZR - Free Report) is scheduled to report third-quarter 2024 results on Oct. 29, after the closing bell.

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In the last reported quarter, the company reported a negative earnings surprise of 100%.

Trend in CZR’s Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased to 23 cents from 29 cents in the past 30 days. The estimated figure indicates a decline from earnings of 34 cents in the year-ago quarter.

For revenues, the consensus mark is pegged at $2.93 billion, indicating a decline of 2.2% from the year-ago reported figure.

Let us look at the factors that might have shaped CZR’s performance in the quarter under review.

Factors Influencing CZR’s Q3 Results

Earnings and revenues are expected to have declined year over year in the third quarter due to constant disruptions associated with weather and construction.

In the to-be-reported quarter, the company expects Regional segment's quarterly net revenues to lower than the year-ago level, primarily due to construction disruptions at some properties, and adverse weather conditions as well as increased competition.

The Zacks Consensus Estimate for total Las Vegas revenues is pegged at $1.10 billion, indicating a decline of 1.4% from the year-ago levels. Total Regional revenues are pegged at $1.49 billion, implying a decline of 4.9% from the year-ago levels. The consensus estimate for Manage and Branded revenues is pegged at $74 million, indicating a 24.5% decrease from the prior-year levels.

However, CZR is likely to have benefited from improving occupancy, strategic partnerships and increased sports-betting volumes. Also, an increased focus on digital initiatives and significant-tech enhancements to boost product offerings and drive better customer engagement is likely to have aided the company's performance in the third quarter. The Zacks Consensus Estimate for total Caesars Digital revenues is pegged at $274 million, indicating a 27.4% increase from the year-ago levels.

Growth of retail sports betting and property development projects are likely to have boosted the company’s top line in the to-be-reported quarter. The consensus estimate for total casino revenues is pegged at $1.65 billion, indicating an increase of 1.6% from the prior-year levels.

Meanwhile, the company’s bottom line is likely to have been strained by inflationary pressures, primarily in food, beverage and hotel expenses. Increased property openings and ongoing investments in new projects might have further impacted profitability.

What Our Model Indicates for CZR

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. This is not the case here.

Earnings ESP: Earnings ESP for CZR is -18.70%. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Marriott International, Inc. (MAR Quick QuoteMAR - Free Report) currently has an Earnings ESP of +1.57% and a Zacks Rank of 3.

MAR’s earnings for the to-be-reported quarter are expected to increase 9.5%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 16.9%.

Choice Hotels International, Inc. (CHH Quick QuoteCHH - Free Report) currently has an Earnings ESP of +5.84% and a Zacks Rank of 3.

CHH’s earnings for the to-be-reported quarter are expected to increase 5%. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, the average surprise being 3.4%.

Norwegian Cruise Line Holdings Ltd. (NCLH Quick QuoteNCLH - Free Report) currently has an Earnings ESP of +1.66% and a Zacks Rank of 1.

NCLH’s earnings for the to-be-reported quarter are expected to increase 23.68%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 5.7%.