Caesars Entertainment Faces Losses, Stock Rating Remains Moderately Positive

Caesars Entertainment Expected to Report Q4 Losses - Analysts remain moderately optimistic about CZR despite ongoing losses and poor earnings history.

Date: 20-01-2025

AI Rating: 5

Earnings Per Share (EPS)
The report highlights that analysts expect Caesars Entertainment, Inc. (CZR) to report a loss of $0.04 per share for Q4, which is an improvement compared to a loss of $0.34 per share in the same quarter last year. However, the company's earnings surprise history shows that CZR has missed Wall Street's bottom-line estimates consistently for the last four quarters, which paints a negative picture for investor confidence.

Looking at future expectations, the company is forecasted to report a larger loss of $0.58 for fiscal 2024, a significant decrease from the profit of $0.92 in fiscal 2023. This trend appears concerning; nevertheless, a rebound is anticipated in fiscal 2025, with an expected profit of $1.30, marking a robust year-over-year growth of 324.1%.

Revenue Growth
In terms of revenue, the report indicates that CZR experienced a year-over-year decline of 4% to $2.9 billion in the last quarter. This figure is notably below the expected revenue forecast by 1.4%, largely influenced by soft contributions from the Regional segment and adverse external market conditions.

Despite the underwhelming revenue performance, the stock still holds a "Moderate Buy" rating from Wall Street, with the mean price target set at $50.43 which indicates a favorable 48.1% potential upside from current levels. While CZR shares have declined 23% over the past 52 weeks, the strong evaluation from analysts shows a cautious optimism regarding future growth.

Overall Impression
Given the mixed signals of consistent losses and a slightly hopeful price target, investors might approach CZR with caution. The upcoming fiscal announcements will be essential in setting the market's tone regarding the company's future.

Stocks: CZR