We recently published 10 Market Winners With Stunning Gains. Caesars Entertainment Inc. (NASDAQ:CZR) was one of the best performers on Wednesday. Caesars Entertainment rallied for a second day on Wednesday, jumping 13.03 percent to close at $21.42 apiece as investors took heart from maintained bullish ratings from six investment firms despite lower price targets for its stock. In separate market reports on the same day, Macquarie, Truist, Deutsche, Citizens, Stifel, and Barclays all maintained “buy” reco ...

Core Insights - MGM Resorts International has received 13 Five-Star awards from Forbes Travel Guide, highlighting its commitment to luxury and exceptional service in Las Vegas and Macau [1][1][1] Awards and Recognition - MGM Resorts has been awarded Five-Star designations for multiple properties, including SKYLOFTS at MGM Grand for the 17th consecutive year, ARIA Sky Suites for the 14th year, and MGM MACAU for the 11th year [1][1][1] - The Spa at ARIA has maintained its Five-Star status for the eighth consecutive year, while The Spa at Four Seasons Las Vegas has achieved this honor for the sixth consecutive year [1][1][1] - In the restaurant category, Joël Robuchon at MGM Grand has celebrated its 20th consecutive Five-Star rating, and Le Cirque at Bellagio has received the honor for the 10th consecutive year [1][1][1] Company Overview - MGM Resorts International is a global gaming and entertainment company listed on the S&P 500, featuring a portfolio of 31 hotel and gaming destinations worldwide [1][1][1] - The company operates BetMGM, a joint venture offering sports betting and online gaming in North America, and is pursuing expansion in Asia with a resort development in Japan [1][1][1] - MGM Resorts is recognized as one of FORTUNE Magazine's World's Most Admired Companies, reflecting its commitment to sustainability and community impact [1][1][1]

Core Insights - Boyd Gaming reported record revenues and EBITDA for 2025, with approximately $1.4 billion in EBITDA and property-level margins of 40% [3][6] - The company unlocked significant value from its FanDuel ownership interest, generating nearly $1.8 billion in cash proceeds, which helped reduce leverage to 1.7x [2][6] - Management expects traditional leverage to approach 2.5x in 2026 due to a $340 million tax payment and ongoing capital investments [1][6] Financial Performance - For Q4 2025, Boyd reported company-wide revenue of $1.1 billion and EBITDA of $337 million, driven by strong core customer play [7] - Year-over-year EBITDA comparisons were impacted by approximately $40 million due to changes in the Online segment and severe winter weather [8] - The Las Vegas locals segment showed strong performance, with nearly 2.5% EBITDAR growth excluding The Orleans, which faced a decline in cash hotel revenue [10] Capital Returns and Shareholder Value - Boyd returned $836 million to shareholders in 2025, including $778 million in share repurchases and $58 million in dividends [5][19] - The company plans to continue repurchasing approximately $150 million in shares per quarter, supplemented by a quarterly dividend [5][19] Capital Expenditures and Development - Boyd guided for capital expenditures of approximately $650 million to $700 million in 2026, including significant projects like the $750 million Norfolk resort [5][16][17] - The company is also working on a $160 million new gaming facility at Par-A-Dice, with construction expected to begin in 2027 [17] Online and Managed Businesses - The Online segment generated full-year EBITDAR of $63 million, with projections for 2026 EBITDAR of $30 million to $35 million due to changes in revenue share agreements [14] - Managed businesses, including Sky River Casino, are expected to contribute EBITDAR of $110 million to $114 million in 2026 [15]

Industry Overview - Consumer discretionary businesses are sensitive to economic cycles, leading to underperformance during macroeconomic uncertainty, with a 14.8% return over the past six months compared to the S&P 500's 19.5% gain [1] Company Analysis: Caesars Entertainment (CZR) - Caesars Entertainment has a market cap of $3.91 billion and operates casinos, hotels, and resorts [3] - The stock is trading at $19.16 per share, reflecting a high forward P/E ratio of 56.2x, raising concerns about its valuation [5] Company Analysis: Leggett & Platt (LEG) - Leggett & Platt has a market cap of $1.18 billion and is a diversified manufacturer [6] - The stock price of $8.72 indicates a forward P/E ratio of 8.1x, suggesting caution in investment [8] Company Analysis: Sphere Entertainment (SPHR) - Sphere Entertainment has a market cap of $2.58 billion and is known for its Las Vegas venue [9] - The company has experienced flat sales over the last two years, indicating a lack of consumer excitement [11] - A low free cash flow margin of 1.2% constrains its growth and capital return capabilities [11] - The net-debt-to-EBITDA ratio of 7x raises concerns about its ability to secure additional capital [11] - Sales stagnation over the last five years, with a 12.7% annual decline in earnings per share, highlights the need for new growth strategies [12] - The company has shown lackluster revenue growth of 8.5% annually over the last five years, indicating competitive disadvantages [13]

Core Insights - Caesars Entertainment, Inc. (CZR) is a gaming and hospitality company with a market cap of $4.6 billion, operating in 18 states and offering various services including casinos, hotels, and restaurants [1] - The company is expected to report a fiscal third-quarter loss of $0.04 per share, consistent with the previous year, and has missed consensus estimates in three of the last four quarters [2] - For the full fiscal year, CZR is projected to report a loss of $0.93 per share, a significant decrease from $0.55 in fiscal 2024, but is expected to rebound with an EPS of $0.63 in fiscal 2026, reflecting a 167.7% year-over-year increase [3] Performance Metrics - CZR stock has underperformed the S&P 500 Index, which gained 14.8% over the past 52 weeks, with CZR shares down 50.9% during the same period [4] - Following the Q2 results announcement, CZR shares fell over 3% after reporting a loss of $0.39 per share, which was below Wall Street's expectation of $0.07 EPS, despite revenue of $2.91 billion exceeding forecasts [5] Analyst Sentiment - The consensus opinion on CZR stock is moderately bullish, with a "Moderate Buy" rating; 12 out of 17 analysts recommend a "Strong Buy," four suggest a "Hold," and one advises a "Strong Sell" [6] - The average analyst price target for CZR is $39.75, indicating a potential upside of 79.1% from current levels [6]

Core Points - Caesars Entertainment, Inc. will release its financial results for the third quarter of 2025 after the market closes on October 28, 2025 [1] - A conference call will be held on the same date at 5:00 p.m. Eastern Time to discuss the results and other company-related matters [1] - Participants interested in the call can register online to receive the dial-in number via email [1]

Financial Data and Key Metrics Changes - The company achieved a group-wide adjusted property EBITDA of approximately $378 million for Q2 2025, representing a 25% year-over-year growth [11] - Macau property EBITDA grew by 35% year-over-year and 13% quarter-over-quarter, with a margin of 29.2%, the second highest on record [4][12] - Consolidated cash on hand was approximately $1.2 billion, with available liquidity of $2.3 billion as of the end of Q2 2025 [12] Business Line Data and Key Metrics Changes - Mass table games revenue at City of Dreams and Studio City reached all-time highs, contributing to increased gaming volumes and revenues [4] - The House of Dancing Water reopened in May with an average occupancy of around 98%, significantly boosting non-gaming revenue [5] - In the Philippines, the company implemented cost reduction initiatives, leading to higher profitability and a recovery in gaming revenue in July [7] Market Data and Key Metrics Changes - Visitation to City of Dreams Macau increased by 31% year-over-year in Q2, with average daily property visitation reaching record levels in July [5] - In Cyprus, gaming revenue has surpassed pre-war levels following the Iran-Israel conflict, with positive forward bookings for the summer [8] Company Strategy and Development Direction - The company is focusing on enhancing customer experience through renovations and new offerings, including a full renovation of the Countdown Hotel planned for 2026 [6] - The strategic review in the Philippines is ongoing, with updates to be provided in the future [7] - The opening of City of Dreams Sri Lanka is expected to create new opportunities in the premium segment of the Indian customer base [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market's performance, citing a strong first half of 2025 and a stabilizing Chinese economy [28] - The company is cautiously optimistic about Q3, expecting to carry momentum from June into July [29] - Management noted that they are continuously monitoring the competitive landscape and adjusting strategies as necessary [36] Other Important Information - The company repurchased approximately $120 million of its shares in Q2, taking advantage of market dislocation [14] - An impairment in goodwill of approximately $56 million was recognized in Q2 due to the closure of Grand Dragon Casino and three Mocha Clubs [15] Q&A Session Summary Question: Plans for remodeling gaming floors at COD or Studio City - Management highlighted ongoing improvements in product and customer experience, with significant renovations planned for the Countdown Hotel and enhancements to gaming areas [18][19] Question: Expectations for normalized EBITDA in Q3 - Management indicated strong market conditions and momentum from previous quarters, suggesting a positive outlook for Q3 [28][29] Question: Competitive dynamics in the market - Management acknowledged the competitive nature of Macau but emphasized their focus on product and service differentiation rather than aggressive pricing [34][36] Question: Contribution of House of Dancing Water to gaming business - The House of Dancing Water has positively impacted visitation and F&B covers, but management sees opportunities to improve conversion rates to gaming customers [75] Question: Update on the Philippines market - Management noted stabilization in the Manila market and positive results from cost reduction initiatives, with expectations for improved performance in the second half of the year [78][79]

Financial Data and Key Metrics Changes - The company reported record highest ever consolidated net revenue results in Q2 2025, driven by a diverse portfolio and global presence [6][18] - BetMGM North America raised full year 2025 guidance for the second time, implying an EBITDA turnaround of nearly $400 million compared to last year [7][20] - Adjusted EBITDAR decline in Las Vegas was primarily due to the MGM Grand, which accounted for over 80% of the decline, with a total impact of $60 million [10][22] Business Line Data and Key Metrics Changes - BetMGM North America saw revenue from operations up 36% in Q2, with EBITDA of $86 million and iGaming growing 29% [19] - Las Vegas resorts reported record table games and slot volumes, with adjusted EBITDAR decline isolated to specific properties [9][21] - MGM Digital grew its top line by 14%, with expectations of over $150 million in EBITDA enhancements in 2025 [25] Market Data and Key Metrics Changes - MGM China achieved record adjusted EBITDAR and market share of 16.6%, with share increasing every month of the quarter [13] - Regional properties reported record high net revenues and strong performance across gaming, hotel, and food and beverage segments [14] - The Las Vegas Convention Center is undergoing a $1.6 billion renovation, expected to enhance convention attendance [11] Company Strategy and Development Direction - The company aims to be the world's premier gaming entertainment company, leveraging its unmatched portfolio diversity to drive growth [6][28] - MGM is positioned to capitalize on significant near-term catalysts in BetMGM and Las Vegas, as well as mid to long-term catalysts in digital and development projects [7][18] - The company is focused on premium and luxury offerings, particularly in Macau and Las Vegas, to capture market share [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about restoring growth in Las Vegas during Q4 2025, supported by positive bookings and upcoming events [22][32] - The company remains confident in its ability to attract premium customers despite challenges in the value-oriented segment [92] - Management highlighted the importance of maintaining a strong balance sheet while pursuing growth opportunities in various markets [18][72] Other Important Information - The company repurchased 8 million shares for $217 million in April, with board approval for an additional $2 billion in share repurchases [26] - MGM's exclusive relationship with Marriott is driving performance, with a significant increase in room nights booked [12][45] - The company is actively pursuing development projects in Japan and New York, with expectations of substantial revenue generation [17][18] Q&A Session Summary Question: Impact of MGM Grand disruption - The estimated impact remains at $65 million, with about $40 million experienced in the first half of the year [35][36] Question: Pricing and value concerns in Vegas - Luxury products have seen an increase in average daily rate (ADR), while value-oriented properties are facing challenges [38][39] Question: Digital business cross-benefits - There has been a 30% growth in Nevada monthly actives, showcasing the effectiveness of the omnichannel strategy [41][43] Question: Update on MGM China dividend policy - The board approved a dividend policy of 50% of distributable net income, providing substantial cash flow for the company [61][62] Question: Share buyback strategy - The company is cautious about share repurchases due to its development pipeline but remains within leverage targets [72][73] Question: Visitation decline in Las Vegas - International visitation has been an issue, but the company is confident in attracting premium customers [90][91]

Core Insights - Caesars Entertainment reported revenue of $2.91 billion for the quarter ended June 2025, reflecting a 2.7% increase year-over-year and surpassing the Zacks Consensus Estimate of $2.88 billion by 1.1% [1] - The company experienced an EPS of -$0.39, a significant decline from $0 in the same quarter last year, resulting in an EPS surprise of -657.14% against the consensus estimate of $0.07 [1] Revenue Performance - Las Vegas net revenues were $1.05 billion, falling short of the estimated $1.07 billion, marking a year-over-year decrease of 4.3% [4] - Regional net revenues reached $1.44 billion, exceeding the average estimate of $1.4 billion, with a year-over-year increase of 3.6% [4] - Caesars Digital net revenues were reported at $343 million, surpassing the estimated $329.84 million, showing a substantial year-over-year growth of 24.3% [4] - Managed and Branded net revenues were $74 million, slightly above the estimated $69.88 million, reflecting a 5.7% increase year-over-year [4] - Corporate and Other net revenues were $1 million, compared to an estimated -$0.33 million, indicating a drastic year-over-year change of -150% [4] - Hotel net revenues were $509 million, slightly below the estimated $513.18 million, with a year-over-year decline of 1% [4] Adjusted EBITDA Analysis - Adjusted EBITDA for Las Vegas was $469 million, below the average estimate of $482.18 million [4] - Adjusted EBITDA for Regional operations was $439 million, also below the average estimate of $460.54 million [4] - Corporate and Other adjusted EBITDA was reported at -$50 million, closely aligning with the average estimate of -$50.48 million [4] - Caesars Digital adjusted EBITDA reached $80 million, significantly higher than the estimated $56.27 million [4] - Managed and Branded adjusted EBITDA was $17 million, slightly below the average estimate of $17.72 million [4] Stock Performance - Caesars Entertainment shares have returned +3.6% over the past month, matching the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance compared to the broader market in the near term [3]

Group 1 - VICI Properties is a REIT focused on gaming and hospitality properties, formed from the Caesars private equity deal and subsequent bankruptcy, and has one of the largest portfolios of leisure assets [1] - The analyst emphasizes a strategy of identifying undervalued and disliked companies or industries with strong fundamentals and good cash flows, particularly in sectors like Oil & Gas and consumer goods [1] - The analyst expresses a preference for long-term value investing while also engaging in deal arbitrage opportunities, citing examples such as Microsoft/Activision Blizzard and Spirit Airlines/Jetblue [1] Group 2 - The analyst does not hold any stock or derivative positions in the companies mentioned and has no plans to initiate any positions within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not compensated for it, aside from Seeking Alpha [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole [3]