Caesars Entertainment Gears Up for Q4 Earnings: What's in Store?

Core Viewpoint - Caesars Entertainment, Inc. (CZR) is expected to report its fourth-quarter 2024 results on February 25, with a consensus estimate indicating a loss per share of 15 cents and revenues of $2.81 billion, reflecting a slight decline from the previous year [1][3]. Financial Performance Expectations - The Zacks Consensus Estimate for CZR's loss per share has widened from 10 cents to 15 cents over the past week, compared to a loss of 34 cents per share in the same quarter last year [3]. - The expected revenue of $2.81 billion indicates a year-over-year decline of 0.5% [3]. Factors Influencing Performance - Revenue decline is attributed to increased competition, construction-related disruptions, adverse weather conditions, and shifts in visitor travel patterns [4]. - The Regional segment's net revenues are projected to be $1.33 billion, down 2.8% from the previous year, while Manage and Branded revenues are expected to remain flat at $68 million [5]. Positive Influences on Performance - CZR is likely to benefit from improved occupancy rates, average daily rate (ADR) trends, renovations, and increased sports-betting volumes [6]. - The total Las Vegas revenues are estimated at $1.09 billion, a slight increase of 0.3% from the prior year, and total Caesars Digital revenues are expected to reach $326 million, reflecting a 7.2% increase [7]. Revenue Growth Areas - Growth in retail sports betting and property development projects are anticipated to enhance the company's top line, with total casino revenues estimated at $1.62 billion, indicating a 2.7% increase from the previous year [8]. Cost Pressures - The bottom line may be impacted by inflationary pressures in food, beverage, and hotel expenses, along with increased property openings and ongoing investments in new projects [9]. Earnings Prediction Model - The Zacks model predicts an earnings beat for CZR, supported by a positive Earnings ESP of +0.87% and a Zacks Rank of 3 (Hold) [10][11].