Hotel and casino entertainment company Caesars Entertainment (NASDAQ: CZR) will be reporting earnings this Tuesday after the bell. Here’s what investors should know.
Caesars Entertainment met analysts’ revenue expectations last quarter, reporting revenues of $2.79 billion, up 1.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income 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 grow 1.5% year on year to $2.87 billion, a reversal from the 1.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 8 downward revisions over the last 30 days (we track 12 analysts). Caesars Entertainment has missed Wall Street’s revenue estimates five 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 6.8%, beating analysts’ expectations by 5.4%, and Boyd Gaming reported revenues up 6.9%, topping estimates by 5.4%. Monarch traded up 20.4% following the results while Boyd Gaming was also up 4.1%.
Read our full analysis of Monarch’s results here and Boyd Gaming’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 10.3% on average over the last month. Caesars Entertainment is up 4.8% during the same time and is heading into earnings with an average analyst price target of $43.96 (compared to the current share price of $29.75).
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