Caesars Entertainment Faces Earnings Setbacks, Stock Drops 8.2%

Caesars Entertainment struggles with disappointing Q3 earnings, reporting a loss of $0.04 per share and net revenue of $2.9 billion. This decline is evident as shares tumble 8.2%, impacting investor sentiment and overall stock performance. Investors should monitor future earnings closely.

Date: 08-02-2025

AI Rating: 4

Earnings Per Share (EPS)
Caesars reported an adjusted EPS loss of $0.04, which missed consensus estimates. Analysts expect a significant decline in EPS for fiscal 2024, forecasting a loss of $0.64 per share.

Net Income
The reported net revenue of $2.9 billion suggests challenges as it lagged the consensus estimate, indicating potential struggles in improving profitability.

Revenue Growth
Revenue in the Regional segment dropped by 7.6% year-over-year to $1.5 billion, largely affected by competition and operational disruptions. Meanwhile, Las Vegas revenues fell 1.3% to $1.1 billion, affected by weaker gaming volumes.

Given the adverse financial performance and downgrades from analysts, stock prices may continue to be pressured. The lowering of the price target to $57, despite maintaining an “Outperform” rating by JMP Securities, signifies caution among analysts regarding future price movements.

The mixed ratings from analysts, with a consensus of “Moderate Buy” driven by 11 “Strong Buy,” indicates varied investor sentiment, making it crucial to stay updated on any future earnings reports or changes in market conditions that could affect performance.

Stocks: CZR