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What's in Store for Caesars Entertainment (CZR) Q1 Earnings?

Zacks Equity Research
·4-min read

Caesars Entertainment Corporation CZR is scheduled to report first-quarter 2020 results on May 11, after market close. In the last-reported quarter, the company delivered a negative earnings surprise of 333.3%.

How Are Estimates Placed?

The Zacks Consensus Estimate for first-quarter bottom line is pegged at a loss of 17 cents per share, suggesting an improvement from the loss of 32 cents recorded in the year-ago quarter. For revenues, the consensus mark is pegged at $1,992 million, indicating a decline of 5.8% from the year-ago figure.

Let's take a look at how things have shaped up in the quarter.

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Caesars Entertainment Corporation Price and EPS Surprise

 

Caesars Entertainment Corporation Price and EPS Surprise
Caesars Entertainment Corporation Price and EPS Surprise

Caesars Entertainment Corporation price-eps-surprise | Caesars Entertainment Corporation Quote

Factors at Play

The coronavirus pandemic is expected to have materially affected Caesars Entertainment’s performance in the first quarter. The shutdown of properties in March and reduced traffic due to cancellation of domestic trips are likely to get reflected on the top-line results. Also increased costs in sports betting and marketing initiatives are likely to have weighed on margins in the to-be-reported quarter.

Robust Las Vegas gaming volume prior to the coronavirus crisis in the United States is likely to have boosted the company’s top line. Moreover, strategies like geographic expansion, opening of new sportsbooks, installing of table games and focusing on cost-saving initiatives are likely to get reflected in the first-quarter results. Also, the opening of Caesars Forum Convention Center in March along with a strong NFL partnership is likely to have benefited the company in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Caesars Entertainment this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. That is not the case here.

Earnings ESP: Caesars Entertainment has an Earnings ESP of -136.36%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

Boyd Gaming Corporation BYD reported preliminary first-quarter 2020 results, wherein both the top and the bottom line missed the Zacks Consensus Estimate. Adjusted loss per share came in at 2 cents comparing unfavorably with the Zacks Consensus Estimate of earnings of 23 cents. In the prior-year quarter, the company reported adjusted earnings of 43 cents per share. Quarterly revenues of $680.5 million missed the consensus mark by 12.1% and declined 47.7% year over year.

MGM Resorts International MGM reported first-quarter 2020 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. The company reported adjusted loss per share of 45 cents, wider than the Zacks Consensus Estimate of a loss of 8 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 14 cents. Quarterly revenues of $2,252.8 million, lagged the consensus mark by 11.4% and declined 29% year over year as well.

Wynn Resorts, Limited WYNN reported first-quarter 2020 results, wherein both earnings and revenues missed the Zacks Consensus Estimate for the third straight quarter. The company reported an adjusted loss of $3.54 per share, wider than the Zacks Consensus Estimate of a loss of $1.05. In the prior-year quarter, the company had reported adjusted earnings per share of $1.61. Further, quarterly revenues of $953.7 million lagged the consensus mark by 12.7% and declined 42.3% year over year as well.

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MGM Resorts International (MGM) : Free Stock Analysis Report
 
Wynn Resorts Limited (WYNN) : Free Stock Analysis Report
 
Caesars Entertainment Corporation (CZR) : Free Stock Analysis Report
 
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
 
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