Caesars Entertainment, Inc. CZR is all set to report its fourth-quarter 2023 results on Feb 20, after the closing bell. In the last reported quarter, the company pleasantly surprised with a 25.9% earnings beat.
Trending Estimates
Market estimates peg the loss at 3 cents per share, an improvement from the 11 cents loss reported for the prior-year quarter, CZR is expected to see a 0.4% growth in revenue, estimated at $2.83 billion for the upcoming quarter.
Let’s delve into the factors influencing CZR’s performance in this quarter.
Influencing Factors
Anticipated to observe a year-over-year hike in revenues for Q1, driven by pent-up demand, expansion of retail sports betting, and ongoing property development projects. In addition, promising prospects lie in a robust Group and Convention business, revamped marketing strategies, and strategic expansion into new markets.
The Zacks Consensus Estimate for fourth-quarter total Las Vegas revenues projects a $1.12 billion figure, 2.6% lower than the year-ago levels. Meanwhile, Manage and Branded as well as Regional revenues are estimated at $78 million and $1.37 billion, marking an 8.3% and 1.1% rise, respectively, from last year’s figures.
However, the company’s bottom line might take a hit owing to increased investments in digital business and a surge in operating expenses. Inflationary pressure, especially in food and beverage, and hotel expenses further burdens CZR’s profitability.
Caesars Entertainment, Inc. Price and EPS Surprise
Caesars Entertainment, Inc. price-eps-surprise | Caesars Entertainment, Inc. Quote
Insights from Our Model
Our model does not conclusively predict an earnings beat for Caesars Entertainment this time around. A positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) typically bolster the likelihood of an earnings beat.
Earnings ESP: CZR’s Earnings ESP stands at -235.87%. Navigate 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.
Positive Stock Mix
The consumer discretionary stocks that exhibit potential to outshine market estimates are:
Six Flags Entertainment Corporation SIX, with an Earnings ESP of +21.85% and a Zacks Rank of 2. It is expected to encounter a 15.6% earnings decline for the upcoming quarter.
Cedar Fair, L.P. FUN presently holds an Earnings ESP of +3.94% and a Zacks Rank of 3. It is anticipated to experience a 35.1% drop in earnings for the quarter to be reported.
Choice Hotels International, Inc. CHH currently boasts an Earnings ESP of +1.48% and a Zacks Rank of 3, with anticipated earnings growth of 7.1%.
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