Hotel and casino entertainment company Caesars Entertainment (NASDAQ: CZR) will be reporting results tomorrow afternoon. Here’s what you need to know.
Caesars Entertainment missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $2.83 billion, down 1.7% year on year. It was a softer quarter for the company, with a miss of analysts’ earnings and operating margin estimates.
Is Caesars Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Caesars Entertainment’s revenue to decline 2.5% year on year to $2.92 billion, a reversal from the 3.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 7 downward revisions over the last 30 days (we track 12 analysts). Caesars Entertainment has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Caesars Entertainment’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Boyd Gaming delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 4.8%, and Monarch reported revenues up 3.7%, topping estimates by 2.9%. Boyd Gaming traded up 7.8% following the results while Monarch was also up 6.4%.
Read our full analysis of Boyd Gaming’s results here and Monarch’s results here.
Inflation fears have put pressure on growth stocks, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 2% on average over the last month. Caesars Entertainment is up 4.2% during the same time and is heading into earnings with an average analyst price target of $54.25 (compared to the current share price of $43.51).
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