Caesars Entertainment Gears Up for Q1 Earnings: What's in the Offing?

Core Viewpoint - Caesars Entertainment, Inc. is expected to report its first-quarter 2025 results on April 29, with a consensus estimate indicating a loss per share of 19 cents, widening from 18 cents in the past week, compared to a loss of 55 cents per share in the same quarter last year [1][2]. Group 1: Revenue Expectations - The consensus estimate for total revenues is set at $2.78 billion, reflecting a 1.4% increase from the previous year [2]. - Regional revenues are estimated at $1.38 billion, indicating a 0.7% year-over-year gain [6]. - Total Las Vegas revenues are projected at $1.03 billion, showing a slight decrease of 0.2% from the prior year [7]. - Caesars Digital revenues are expected to reach $336 million, representing a significant 19.1% increase year-over-year [7]. Group 2: Performance Influencers - The company's revenue growth is anticipated to be driven by new openings, strong performance in the digital segment, and an expansion in sports betting and strategic partnerships [4]. - Improving occupancy rates, average daily rates (ADR), and renovations are likely to contribute positively to performance [5]. - The focus on digital initiatives and technological enhancements is expected to enhance product offerings and customer engagement [5]. Group 3: Profitability Factors - Profitability may be pressured by inflation in food, beverage, and hotel expenses, along with increased property openings and ongoing investments [8]. - However, efforts to drive efficiencies by reducing same-store operating expenses are likely to support the bottom line [8]. Group 4: Earnings Prediction - The Zacks model indicates a potential earnings beat for Caesars Entertainment, supported by a positive Earnings ESP of +23.98% and a Zacks Rank of 3 (Hold) [9][10].