Core Thesis - Caesars Entertainment, Inc. (CZR) is viewed as a compelling investment opportunity in the U.S. gaming sector, driven by factors such as inflecting free cash flow, owned Vegas real estate, minimal exposure to China, and an underappreciated digital segment [2][4] Financial Performance - As of September 8th, CZR's share price was $26.38, with trailing and forward P/E ratios of 11.30 and 15.08 respectively [1] - Caesars Digital has achieved over 12% EBITDA margins, contributing $280 million in LTM EBITDAR and is expected to reach $500 million in the next two years, capturing approximately 9% of the U.S. online sports betting/iGaming market [3] Business Strategy - The company operates over 50 properties across North America, including nine major Las Vegas Strip assets and a growing portfolio of regional markets, supported by a digital platform anchored by William Hill technology [2] - Leadership under Thomas Reeg since 2014 has been stable, successfully integrating acquisitions and maintaining strategic focus [2] Real Estate and Valuation - Caesars owns substantial real estate, including key regional and Strip properties, which could unlock $1–2 billion in enterprise value if partially monetized [3] - The digital business alone could account for a significant portion of market cap on a sum-of-the-parts basis, while mature properties provide stable cash flow [4] Future Outlook - The company is positioned for accelerated deleveraging and buybacks, with $3 billion in liquidity and declining capital expenditure requirements [4] - There is potential for 60–130% upside over the next 12–24 months, driven by digital value realization, free cash flow growth, and capital returns [4]

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]

Core Insights - Caesars Entertainment reported revenue of $2.79 billion for the quarter ended March 2025, reflecting a year-over-year increase of 1.9% and a surprise of +0.50% over the Zacks Consensus Estimate of $2.78 billion [1] - The company's EPS was -$0.54, slightly improved from -$0.55 in the same quarter last year, but significantly below the consensus estimate of -$0.19, resulting in an EPS surprise of -184.21% [1] Financial Performance Metrics - Net Revenues from Las Vegas were $1 billion, which was below the four-analyst average estimate of $1.03 billion, showing a year-over-year decline of -2.4% [4] - Managed and Branded Net Revenues were reported at $67 million, slightly below the average estimate of $69.34 million, with a year-over-year change of -1.5% [4] - Caesars Digital Net Revenues reached $335 million, close to the average estimate of $336.18 million, marking an 18.8% increase year over year [4] - Regional Net Revenues were $1.39 billion, exceeding the average estimate of $1.37 billion, with a year-over-year growth of +1.7% [4] - Adjusted EBITDA for Las Vegas was $433 million, nearly matching the average estimate of $433.44 million [4] - Adjusted EBITDA for Regional operations was $440 million, surpassing the average estimate of $430.71 million [4] - Caesars Digital Adjusted EBITDA was $43 million, exceeding the average estimate of $34.07 million [4] - Adjusted EBITDA for Managed and Branded was $16 million, below the average estimate of $18.35 million [4] Stock Performance - Shares of Caesars Entertainment have returned +12.2% over the past month, contrasting with the Zacks S&P 500 composite's -0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]