Caesars Entertainment Earnings Preview: What to Expect

Reno, Nevada-headquartered Caesars Entertainment, Inc. (CZR) is a prominent gaming and hospitality company valued at $9.9 billion by market cap. Operating renowned brands like Caesars, Harrah’s, Horseshoe, and Eldorado, it provides a wide range of gaming, entertainment, and hospitality services. The leading entertainment company is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Tuesday, October 29.

Ahead of the event, analysts expect CZR to report a profit of $0.27 per share on a diluted basis, down 20.6% from $0.34 per share in the year-ago quarter. The company has failed to beat the consensus estimates in three of the last four quarters while exceeding on one occasion.

For fiscal 2024, analysts expect CZR to report a loss per share of $0.18, down 119.6% from an EPS of $0.92 in fiscal 2023. However, the company is expected to stage a strong recovery in fiscal 2025, with earnings rising to $1.70 per share, a dramatic 1,044.4% year-over-year increase.

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CZR stock has surged 6.2% over the past year, significantly underperforming the S&P 500’s ($SPX) 34.4% gains during this period. Similarly, it has lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 24.5% gains over the same time frame.

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CZR’s underwhelming price performance over the past year can be attributed to macroeconomic headwinds. Despite that, its shares surged over 5% on Oct. 2, leading the S&P 500 gainers after announcing a $500 million stock buyback program.

However, CZR shares fell more than 8% on Aug. 5 as recession concerns affected investors’ outlook on travel and casino stocks.

Analysts’ consensus opinion on CZR stock is cautiously bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, 12 advise a “Strong Buy” rating, three recommend a “Hold” rating, and the remaining analyst gives a “Strong Sell.”

The average analyst price target for CZR is $52.38, indicating a 16.4% potential upside from the current levels.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.