Caesars Entertainment Misses EPS, Analysts Remain Bullish

Caesars Entertainment's recent report reveals a significant earnings miss and revenue shortfall, contributing to an 8% drop in shares. Despite this, analysts maintain a 'Moderate Buy' rating and a promising price target, indicating a potential turnaround.

Date: 10-11-2024

AI Rating: 4

Caesars Entertainment, Inc. (CZR) has reported disappointing Q3 earnings, impacting its stock price and investor sentiment. The company recorded an earnings per share (EPS) loss of $0.04, failing to meet Wall Street's expectation of $0.21. This significant shortfall reflects negatively on the company's operations and overall performance.

Additionally, revenue for the quarter came in at $2.87 billion, which was below the expected $2.91 billion. This revenue growth failure suggests a potential slowdown in business operations, which may further contribute to skepticism among investors about CZR's performance in the upcoming quarters.

Looking ahead, analysts anticipate a further widening of the EPS loss to $0.54 for the fiscal year, which represents a substantial increase of 158.7% compared to the previous year. Such projections can have a long-term impact on the stock price as it signals potentially persistent issues within the company.

In terms of stock performance, CZR has notably underperformed the broader market and its sector, with a decline of 7.4% over the past year while the S&P 500 has surged approximately 36.8%. In 2024, the trend continues as CZR finds itself down 12.9% year-to-date against a 25.7% rise in the S&P index.

Despite these challenges, sentiment among analysts shows a mixed outlook. The consensus rating is a 'Moderate Buy', supported by 12 'Strong Buy' recommendations, suggesting that some experts still see potential for recovery. Macquarie's reaffirmation of an 'Outperform' rating with a price target of $50, along with a mean target of $53.28, implies there is a potential upside amidst current struggles. The highest target of $70 represents a significant upside of 71.4%, indicating that analysts may believe the current downturn is temporary.

Stocks: CZR