Caesars Entertainment Gears Up for Q1 Earnings: What's in the Offing?

Caesars Entertainment, Inc. CZR is scheduled to report first-quarter 2025 results on April 29, after the closing bell.

In the last reported quarter, the company reported a negative earnings surprise of 133.3%.

Trend in CZR’s Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for loss per share has widened to 19 cents from 18 cents in the past seven days. In the prior-year quarter, CZR incurred a loss of 55 cents per share. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

For revenues, the consensus mark is pegged at $2.78 billion, indicating a gain of 1.4% from the year-ago reported figure.

Let us look at the factors that might have shaped CZR’s performance in the quarter to be reported.

Factors Likely to Shape CZR’s Q1 Results

Caesars Entertainment's revenues are expected to have benefited from new openings and strong digital segment performance. The company’s focus on sports betting expansion and strategic partnerships also bodes well.

CZR is likely to have benefited from improving occupancy, ADR trends and renovations. 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 first quarter.

The Zacks Consensus Estimate for total Regional revenues is pegged at $1.38 billion, implying a gain of 0.7% from the year-ago levels. The consensus estimate for Managed and Branded revenues is pegged at $69 million, up 1.5% year over year.

The consensus estimate for total Las Vegas revenues is pegged at $1.03 billion, indicating a slight decrease of 0.2% from the year-ago levels. The Zacks Consensus Estimate for total Caesars Digital revenues is pegged at $336 million, indicating a 19.1% increase from the year-ago 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. However, the company's focus on driving efficiencies through reducing same-store operating expenses is likely to have aided its bottom line in the first quarter.

What the Zacks Model Unveils for CZR

Our proven model predicts 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 exactly the case here.

Earnings ESP of CZR: Caesars Entertainment has an Earnings ESP of +23.98% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

CZR’s Zacks Rank: Caesars Entertainment currently carries a Zacks Rank #3.

Other Stocks With Favorable Combination

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

Stride, Inc. LRN has an Earnings ESP of +7.83% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
Stride is expected to register a 30.6% increase in earnings for the to-be-reported quarter. With the average surprise of 97.8%, Stride’s earnings beat estimates in each of the trailing four quarters.
 
Choice Hotels International, Inc. CHH currently has an Earnings ESP of +0.94% and a Zacks Rank of 3.
 
With the average surprise of 7.5%, Choice Hotels’ earnings beat estimates in three of the trailing four quarters and missed on one occasion. Choice Hotels’ earnings for the to-be-reported quarter are expected to increase 7.8%.
 
Norwegian Cruise Line Holdings Ltd. NCLH currently has an Earnings ESP of +9.59% and a Zacks Rank of 3.
 
With the average surprise of 47.9%, Norwegian Cruise’s earnings beat estimates in the trailing four quarters. Norwegian Cruise’s earnings for the to-be-reported quarter are expected to decrease 43.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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