Hotel and casino entertainment company Caesars Entertainment (NASDAQ:CZR)
will be reporting earnings tomorrow afternoon. Here’s what investors should know.
Caesars Entertainment missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $2.80 billion, flat year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
This quarter, analysts are expecting Caesars Entertainment’s revenue to grow 1.8% year on year to $2.79 billion, a reversal from the 3.1% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Caesars Entertainment has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Caesars Entertainment’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 2.1%, and Boyd Gaming reported revenues up 3.2%, topping estimates by 2.1%. Monarch traded up 2.2% following the results while Boyd Gaming was also up 4.6%.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.7% on average over the last month. Caesars Entertainment is up 13.6% during the same time and is heading into earnings with an average analyst price target of $43.20 (compared to the current share price of $28.40).
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