Hotel and casino entertainment company Caesars Entertainment (NASDAQ:CZR) will be reporting earnings this Tuesday after market close. Here’s what you need to know.
Caesars Entertainment beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $2.91 billion, up 2.7% 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 for active Edge members.
This quarter, analysts are expecting Caesars Entertainment’s revenue to be flat year on year at $2.89 billion, improving from the 4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. 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 Q3 results, giving us a hint as to what we can expect. Boyd Gaming delivered year-on-year revenue growth of 4.5%, beating analysts’ expectations by 15.7%, and Monarch reported revenues up 3.6%, falling short of estimates by 1.7%. Boyd Gaming traded down 7.3% following the results while Monarch was also down 4%.
Read our full analysis of Boyd Gaming’s results here and Monarch’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Caesars Entertainment is down 20% during the same time and is heading into earnings with an average analyst price target of $40 (compared to the current share price of $22.30).
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