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Caesars Entertainment (CZR) Down 0.4% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Caesars Entertainment (CZR - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Caesars Entertainment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Caesars Q2 Earnings Miss Estimates on Higher Costs, Revenues Beat
Caesars Entertainment reported second-quarter 2026 results, with the bottom line missing the Zacks Consensus Estimate and revenues beating the same. The top line increased year over year, while the bottom line improved from the prior-year quarter’s figure.
CZR’s Q2 Earnings & Revenue Discussion
For the quarter, the company reported a loss per share of 30 cents, narrower than the year-ago quarter’s loss of 39 cents but below the Zacks Consensus Estimate of earnings of 4 cents. This translated to a negative earnings surprise of 850%.
Net revenues of $2.99 billion rose 3% year over year and beat the $2.96 billion consensus mark by 1.1%. Growth was driven by strength in the Regional segment and higher casino revenues, with Regional slot handle rising 6.7% year over year. However, weakness in Las Vegas and higher operating costs weighed on profitability, as consolidated adjusted EBITDA declined 3.7% to $920 million.
Q2 Segmental Performance of Caesars
Las Vegas: Net revenues totaled $1.02 billion, down 3.5% year over year. Adjusted EBITDA declined 12.6% to $410 million. Lower city-wide leisure visitation, reduced non-gaming revenues, lower hotel occupancy and weaker table games volume and hold affected results. Slot handle increased 5.4% to $2.67 billion.
Regional: Net revenues increased 9.4% to $1.57 billion, while adjusted EBITDA advanced 11.2% to $488 million. Results benefited from the consolidation of Caesars Windsor, increased visitation in northern Nevada related to a national tournament and positive results from capital investments in Lake Tahoe and New Orleans.
Caesars Digital: Net revenues rose 2.3% to $351 million. Adjusted EBITDA decreased 15% to $68 million. Sports betting handle increased 2.9% to $2.57 billion, while iGaming handle rose 2.7% to $4.83 billion. Higher gaming tax rates and lower sports betting hold weighed on profitability.
Managed and Branded: Net revenues declined 23% to $57 million, while adjusted EBITDA fell 5.9% to $16 million. Caesars Windsor's management fees and reimbursable revenues shifted from this segment to Regional following the March 3 transition. Corporate and Other recorded negative revenues of $2 million and an adjusted EBITDA loss of $62 million.
CZR's Expense and Profitability Trends
Total operating expenses increased 4.2% year over year to $2.48 billion. Casino expenses rose 7.7% to $955 million, while general and administrative expenses increased 9.2% to $521 million. Higher gaming taxes, Caesars Windsor consolidation and higher property taxes contributed to the increase.
Operating income declined to $513 million from $526 million. Interest expense, net, decreased to $573 million from $579 million, primarily owing to lower outstanding debt and lower variable-rate interest expense, partly offset by increased lease-related interest expense.
CZR's Liquidity and Fertitta Deal Remain in Focus
As of June 30, 2026, cash and cash equivalents were $965 million, up from $887 million at 2025-end. Total outstanding indebtedness declined to $11.81 billion from $11.91 billion, while net debt fell to $10.84 billion from $11.02 billion. Total liquidity was $2.93 billion.
For the first six months of 2026, operating cash inflow totaled $675 million versus $680 million a year earlier. Capital expenditures fell to $335 million from $453 million, with another $310-$390 million expected for the remainder of 2026.
Caesars also remains subject to its pending all-cash acquisition by Fertitta Entertainment. Shareholders are set to receive $31 per share, and the transaction was valued at approximately $17.6 billion, including assumed debt. The deal remains subject to shareholder and regulatory approvals, and Caesars intends to delist its shares from Nasdaq after completion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -85.46% due to these changes.
VGM Scores
At this time, Caesars Entertainment has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Caesars Entertainment has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Caesars Entertainment (CZR) Down 0.4% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Caesars Entertainment (CZR - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Caesars Entertainment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Caesars Q2 Earnings Miss Estimates on Higher Costs, Revenues Beat
Caesars Entertainment reported second-quarter 2026 results, with the bottom line missing the Zacks Consensus Estimate and revenues beating the same. The top line increased year over year, while the bottom line improved from the prior-year quarter’s figure.
CZR’s Q2 Earnings & Revenue Discussion
For the quarter, the company reported a loss per share of 30 cents, narrower than the year-ago quarter’s loss of 39 cents but below the Zacks Consensus Estimate of earnings of 4 cents. This translated to a negative earnings surprise of 850%.
Net revenues of $2.99 billion rose 3% year over year and beat the $2.96 billion consensus mark by 1.1%. Growth was driven by strength in the Regional segment and higher casino revenues, with Regional slot handle rising 6.7% year over year. However, weakness in Las Vegas and higher operating costs weighed on profitability, as consolidated adjusted EBITDA declined 3.7% to $920 million.
Q2 Segmental Performance of Caesars
Las Vegas: Net revenues totaled $1.02 billion, down 3.5% year over year. Adjusted EBITDA declined 12.6% to $410 million. Lower city-wide leisure visitation, reduced non-gaming revenues, lower hotel occupancy and weaker table games volume and hold affected results. Slot handle increased 5.4% to $2.67 billion.
Regional: Net revenues increased 9.4% to $1.57 billion, while adjusted EBITDA advanced 11.2% to $488 million. Results benefited from the consolidation of Caesars Windsor, increased visitation in northern Nevada related to a national tournament and positive results from capital investments in Lake Tahoe and New Orleans.
Caesars Digital: Net revenues rose 2.3% to $351 million. Adjusted EBITDA decreased 15% to $68 million. Sports betting handle increased 2.9% to $2.57 billion, while iGaming handle rose 2.7% to $4.83 billion. Higher gaming tax rates and lower sports betting hold weighed on profitability.
Managed and Branded: Net revenues declined 23% to $57 million, while adjusted EBITDA fell 5.9% to $16 million. Caesars Windsor's management fees and reimbursable revenues shifted from this segment to Regional following the March 3 transition. Corporate and Other recorded negative revenues of $2 million and an adjusted EBITDA loss of $62 million.
CZR's Expense and Profitability Trends
Total operating expenses increased 4.2% year over year to $2.48 billion. Casino expenses rose 7.7% to $955 million, while general and administrative expenses increased 9.2% to $521 million. Higher gaming taxes, Caesars Windsor consolidation and higher property taxes contributed to the increase.
Operating income declined to $513 million from $526 million. Interest expense, net, decreased to $573 million from $579 million, primarily owing to lower outstanding debt and lower variable-rate interest expense, partly offset by increased lease-related interest expense.
CZR's Liquidity and Fertitta Deal Remain in Focus
As of June 30, 2026, cash and cash equivalents were $965 million, up from $887 million at 2025-end. Total outstanding indebtedness declined to $11.81 billion from $11.91 billion, while net debt fell to $10.84 billion from $11.02 billion. Total liquidity was $2.93 billion.
For the first six months of 2026, operating cash inflow totaled $675 million versus $680 million a year earlier. Capital expenditures fell to $335 million from $453 million, with another $310-$390 million expected for the remainder of 2026.
Caesars also remains subject to its pending all-cash acquisition by Fertitta Entertainment. Shareholders are set to receive $31 per share, and the transaction was valued at approximately $17.6 billion, including assumed debt. The deal remains subject to shareholder and regulatory approvals, and Caesars intends to delist its shares from Nasdaq after completion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -85.46% due to these changes.
VGM Scores
At this time, Caesars Entertainment has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Caesars Entertainment has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.