Hotel and casino entertainment company Caesars Entertainment (NASDAQ:CZR) will be reporting earnings this Tuesday after market hours. Here’s what you need to know.
Caesars Entertainment beat analysts’ revenue expectations last quarter, reporting revenues of $2.92 billion, up 4.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS 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 2.1% year on year, in line with the 1.9% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. 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 – casino operator 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 8.9%, beating analysts’ expectations by 5.2%, and PENN Entertainment reported revenues up 6.4%, topping estimates by 1.7%. Monarch traded up 15.9% following the results while PENN Entertainment was also up 16.8%.
Read our full analysis of Monarch’s results here and PENN Entertainment’s results here.
There has been positive sentiment among investors in the consumer discretionary – casino operator segment, with share prices up 12.8% on average over the last month. Caesars Entertainment is up 10.2% during the same time and is heading into earnings with an average analyst price target of $32.83 (compared to the current share price of $28.12).
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