Yahoo Finance Caesars Entertainment (CZR) Q1 Earnings & Revenues Lag Estimates
Caesars Entertainment, Inc. CZR reported drab first-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. Also, the top and the bottom line declined on a year-over-year basis.
Following the results, the diversified gaming and hospitality company’s shares dropped 3% in the after-market trading session on Apr 30, 2024.
Earnings & Revenue Discussion
During the quarter, the company recorded an adjusted loss per share of 55 cents, wider than the Zacks Consensus Estimate of a loss of 3 cents. In the prior-year quarter, the company reported EPS of 9 cents.
Caesars Entertainment, Inc. Price, Consensus and EPS Surprise
Caesars Entertainment, Inc. price-consensus-eps-surprise-chart | Caesars Entertainment, Inc. Quote
Net revenues during the quarter were $2.7 billion, missing the consensus estimate of $2.8 billion by 2.9%. In the prior-year quarter, the company generated net revenues of $2.8 billion.
Segmental Performance
During the first quarter, net revenues in the Las Vegas segment totaled $1.03 billion, down from $1.13 billion in the year-ago quarter. The company registered record occupancy in Las Vegas, driven by the Super Bowl and international visitation for Chinese New Year, which was offset by a lower-than-expected hold. The segment’s adjusted EBITDA amounted to $440 million compared with $533 million in the prior-year quarter.
In the Regional segment, quarterly net revenues were $1.37 billion, down 1.7% year over year. The segment experienced weather-related weakness in January and early February. CZR's new property openings partially offset these negative results. The segment’s adjusted EBITDA reached $433 million compared with $448 million in the prior-year quarter.
First-quarter net revenues in the Caesars Digital segment were $282 million, up 18.5% year over year. Despite lower-than-expected hold in online sports due to unfavorable outcomes for the Super Bowl and March Madness, the segment delivered strong revenue growth. The segment’s adjusted EBITDA totaled $5 million compared with $(4) million in the year-ago quarter.
In the Managed and Branded segment, net revenues during the quarter totaled $68 million, down from $69 million in the prior-year quarter. The segment’s adjusted EBITDA was $18 million compared with $19 million in the prior-year quarter.
Net revenues in the Corporate and Other segment were $(1) million compared with $3 million in the prior-year period. This segment’s adjusted EBITDA totaled $(43) million compared with $(38) million in the year-ago quarter.
Balance Sheet
As of Mar 31, 2024, Caesars Entertainment’s cash and cash equivalents were $726 million, down from $1 billion as of Dec 31, 2023.
Net debt, as of Mar 31, 2024, was $11.71 billion, up from $11.43 billion as of Dec 31, 2023.
Zacks Rank
Caesars Entertainment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
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