What’s on the agenda for Caesars Entertainment (CZR) Q3 earnings? – October 27, 2022

Caesar’s Entertainment, Inc. (CZR Free Report) is scheduled to release third quarter 2022 results on November 1, 2022 after the closing bell. In the previous quarter, the company reported a 36% negative earnings surprise.

The trend of estimate revision

The Zacks Consensus estimate for third-quarter earnings is set at 15 cents a share, showing a 113.9% improvement from a loss of $1.08 in the year-ago quarter.

As for revenue, the consensus level is around $2,832 million, indicating a 5.5% increase from the reported figure for the year-ago quarter.

Let’s look at how things played out over the quarter.

Factors to consider

Caesars Entertainment’s performance in the third quarter is likely to have benefited from the solid performance of Las Vegas, which was helped by improvements in occupancy and higher gaming and food and beverage volumes. During its earnings call for the previous quarter, the company announced that occupancy in Las Vegas reached 97%. It also reported solid group sales pace, supported by pent-up demand (for group travel) and strong booking trends. With international consumers returning and conventional demand accelerating, momentum is likely to have continued in the third quarter. The Zacks Consensus estimate for Las Vegas revenue for the third quarter is $1,051 million, up 3.3% from the year-ago quarter’s level.

The focus on its digital business, sports betting expansion, and real estate developments likely drove revenue in the third quarter. This and a focus on product improvements such as payout speed, customer service, parlay and alternative line offerings should have helped the company’s performance during the quarter. The Zacks Consensus estimate for Caesars Digital’s revenue is $191 million, indicating 99% growth from $96 million in the year-ago quarter.

However, increased investment in the digital business (in terms of product enhancements), competitive pricing strategies, and reduced holding in certain markets are likely to have impacted the company’s performance in the third quarter.

What the Zacks model reveals

Our proven model predicts an earnings hit for Caesars Entertainment this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an Earnings Beat.

Result ESP: Caesars Entertainment has a win ESP of +28.09%. Our Earnings ESP Filter allows you to discover the best stocks to buy or sell before they are reported.

Zacks Rank: The company has a Zacks Rank #3. You can see the full list of today’s Zacks #1 Rank stocks can be found here.

Other stocks poised to outperform their gains

Here are some other Zacks consumer discretionary stocks that investors might want to consider, as our model shows they have the right combination of elements to deliver an earnings hit.

RCI Hospitality Holdings, Inc. (rick Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #1.

RCI Hospitality shares are up 21.1% over the past year. RICK’s earnings have beaten consensus three times and missed once over the past four quarters, with an average surprise of 39.4%.

JAKKS Pacific, Inc. (JAKK Free Report) has an Earnings ESP of +3.25% and a Zacks Rank #3.

JAKKS Pacific shares are up 57.7% over the past year. JAKK’s earnings have beaten consensus for all of the past four quarters, with an average surprise of 155%.

Cedar Fair, L.P (FUN Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.

Cedar Fair shares are down 14.1% over the past year. FUN’s earnings have beaten consensus three times and missed once over the past four quarters, with an average surprise of 5.3%.

Stay up to date on upcoming earnings announcements with the Zacks Earnings Calendar.



source

Leave a Reply

Your email address will not be published. Required fields are marked *