Hotel and casino entertainment company Caesars Entertainment (NASDAQ: CZR) will be reporting results this Tuesday after market close. Here’s what you need to know.
Caesars Entertainment beat analysts’ revenue expectations last quarter, reporting revenues of $2.87 billion, up 2.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Is Caesars Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Caesars Entertainment’s revenue to grow 2.3% year on year, in line with the 2.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Caesars Entertainment has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Caesars Entertainment’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 4.2%, missing analysts’ expectations by 0.7%, and Boyd Gaming reported flat revenue, in line with consensus estimates. Monarch traded down 5.6% following the results while Boyd Gaming’s stock price was unchanged.
Read our full analysis of Monarch’s results here and Boyd Gaming’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.1% on average over the last month. Caesars Entertainment’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $31.27 (compared to the current share price of $29.80).
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