Yahoo Finance What Awaits for Caesars Entertainment's (CZR) Q1 Earnings?
Caesars Entertainment, Inc. CZR is scheduled to report first-quarter 2024 results on Apr 30, after the closing bell. In the last reported quarter, the company reported a negative earnings surprise of 1033.3%.
The Trend in Estimate Revision
The Zacks Consensus Estimate is pegged at a loss of 3 cents per share. In the prior-year quarter, CZR reported an earnings per share of 6 cents. The estimated figure has declined from earnings of 15 cents in the past 60 days.
Caesars Entertainment, Inc. Price and EPS Surprise
Caesars Entertainment, Inc. price-eps-surprise | Caesars Entertainment, Inc. Quote
For revenues, the consensus mark is pegged at $2.82 billion, suggesting a fall of 0.2% from the year-ago quarter’s reported figure.
Let's look at the factors that have shaped CZR’s performance in the quarter under review.
Factors to Note
Caesars Entertainment’s top and bottom lines are expected to have declined year-over-year in first-quarter 2024, due to constant disruptions associated with weather and construction. Increased competition in certain markets, construction disruptions at some properties, and adverse weather conditions are likely to have impacted its regional segment in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter total Las Vegas revenues is pegged at $1.13 billion, down 0.5% from the year-ago levels. Total Regional revenues are pegged at $1.36 billion, down 2.3% from the year-ago levels.
Meanwhile, increased investments in digital business and an uptick in operating expenses are likely to have hurt the company’s bottom line in the to-be-reported quarter. Inflationary pressure, primarily in food and beverage and hotel expenses, further strains CZR's profitability.
Growth of retail sports betting and property development projects are likely to have boosted the company’s top line in line in the to-be-reported quarter. The consensus estimate for total casino revenues is pegged at $1.7 billion, up 7.2% from the prior-year levels.
Strength in the Group and Convention business, improved marketing capabilities and the emphasis on strategic expansion into new markets are likely to have aided the company’s performance in the to-be-reported quarter. The consensus estimate for Manage and Branded revenues is pegged at $71.5 million, up 3.6% from the prior-year levels.
What Our Model Indicates
Our proven model does not concussively predict 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.
Earnings ESP: Earnings ESP for CZR is -455.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CZR currently carries a Zacks Rank #3.
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Fox Corporation FOXA has an Earnings ESP of +8.73% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
FOXA is expected to register a 23.4% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 71.1%.
DraftKings Inc. DKNG currently has an Earnings ESP of +12.65% and a Zacks Rank of 3.
DKNG’s earnings for the to-be-reported quarter are expected to increase 67.8%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, with a negative earnings surprise of 57.1%, on average.
Funko, Inc. FNKO currently has an Earnings ESP of +6.90% and a Zacks Rank of 3.
FNKO’s earnings for the to-be-reported quarter are expected to increase 40.8%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 42.8%.
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Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report
Fox Corporation (FOXA) : Free Stock Analysis Report
Funko, Inc. (FNKO) : Free Stock Analysis Report
DraftKings Inc. (DKNG) : Free Stock Analysis Report
