It has been about a month since the last earnings report for Caesars Entertainment (CZR). Shares have lost about 3.3% 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? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Caesars Entertainment, Inc. before we dive into how investors and analysts have reacted as of late.
Caesars Entertainment Q2 Earnings Miss Estimates, Decline Y/Y
Caesars Entertainment, reported second-quarter 2025 results with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. The top line increased year over year, while the bottom line declined from the prior-year quarter’s figure.
CZR’s Q2 Earnings & Revenue Discussion
For the quarter, the company recorded an adjusted loss per share of 39 cents, missing the Zacks Consensus Estimate of earnings of 7 cents. It reported an adjusted break-even earnings per share in the prior-year quarter.
Net revenues of $2.9 billion beat the consensus mark of $2.88 billion by 1.1% and increased 2.7% year over year.
Q2 Segmental Performance of Caesars Entertainment
Las Vegas: Net revenues in this segment totaled $1.05 billion, down 4.3% from the $1.10 billion reported in the year-ago quarter. The segment’s adjusted EBITDA was $469 million, down from $514 million reported in the prior-year quarter.
Regional: The segment’s quarterly net revenues were $1.44 billion, up 3.6% year over year from $1.39 billion reported in the year-ago quarter. Adjusted EBITDA reached $439 million, down from $469 million reported in the prior-year quarter.
Caesars Digital: The segment’s net revenues were $343 million, up 24.3% year over year from $276 million reported in the year-ago quarter. Adjusted EBITDA totaled $80 million, up from $40 million reported in the year-ago quarter.
Managed and Branded: Net revenues in this segment totaled $74 million, up 5.7% year over year from $68 million reported in the year-ago quarter. The segment’s adjusted EBITDA was $17 million, flat year over year.
Corporate and Other: The segment’s net revenues were $1 million against negative $2 million reported a year ago. Adjusted EBITDA totaled negative $50 million compared with negative $40 million in the year-ago quarter.
Balance Sheet of CZR
As of June 30, 2025, Caesars Entertainment’s cash and cash equivalents were $982 million, up from $866 million as of Dec. 31, 2024.
Net debt, as of June 30, 2025, was $11.29 billion, slightly down from $11.43 billion as of Dec. 31, 2024.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -44% due to these changes.
VGM Scores
At this time, Caesars Entertainment has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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. Interestingly, Caesars Entertainment has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Caesars Entertainment, Inc. (CZR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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