Caesars Entertainment reported a quarterly loss of $0.04 per share, compared to the Zacks Estimate of $0.21. This compares to earnings of $0.34 per share a year ago.
Caesars Entertainment shares fall
This quarterly report represents an earnings surprise of -119.05%. A quarter ago, it was expected that the casino and resort operator would post earnings of $0.14 per share when it actually produced break-even earnings, delivering a surprise of -100%.
Over the past four quarters, the company has failed to beat consensus EPS (Earnings Per Share) estimates.
Caesars Entertainment reported revenue of $2.87 billion for the quarter ending September 2024, missing the Consensus Estimate by 1.30%. This compares to the previous year’s revenues of $2.99 billion. The company has failed to beat consensus revenue estimates over the past four quarters.
The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.
Shares of Caesars Entertainment have lost about 2.9% since the start of the year, compared with the S&P 500’s gain of 22.1%.
The Future of Caesars Entertainment
While Caesars Entertainment has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?
There are no easy answers, but one reliable measure that can help investors answer this question is the company’s earnings outlook. Not only does this include current consensus earnings expectations for next quarter, but also how these expectations have changed recently.
Research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. So, investors can track these reviews on their own or rely on a tried-and-true rating tool.
But ahead of this earnings release, the estimate revisions trend for Caesars Entertainment is mixed. Because while the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
Therefore, the stock is expected to perform in line with the market in the near future.
Projections
It will be interesting to see how the estimates for the coming quarters and the current fiscal year change in the coming days. Thus, the current consensus EPS estimate is $0.18 on revenue of $2.94 billion for the next quarter and -$0.94 on revenue of $11.45 billion for the current year tax.
Therefore, investors should be aware that sector outlooks can also have a significant impact on stock performance. In terms of the Zacks Sector Rank, Leisure and Recreation Services is currently in the top 41% of the 250+ Zacks Sectors.
