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Valued at a market cap of $5.4 billion, Caesars Entertainment, Inc. (CZR) is a gaming and hospitality company that offers a wide range of services, including casino gaming, hotel accommodations, dining, entertainment, and sports betting. The Reno, Nevada-based company is expected to announce its fiscal Q1 earnings for 2025 after the market closes on Tuesday, Apr. 29.
Prior to this event, analysts project this casino operator to report a loss of $0.16 per share, up 70.9% from a loss of $0.55 per share in the year-ago quarter. The company has missed Wall Street's bottom-line estimates in three of the last four quarters, while surpassing on another occasion. Its earnings of $0.05 per share in the previous quarter outpaced the consensus estimates by a notable margin of 133.3%.
For the full year, analysts expect CZR to report EPS of $0.76, up 238.2% from a loss of $0.55 per share in fiscal 2024. Its EPS is expected to further grow 119.7% year over year to $1.67 in fiscal 2026.
CZR has declined 37.7% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 6.6% rise, and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 8.5% uptick over the same time frame.
CZR delivered its Q4 results on Feb. 25. Shares of the company closed down marginally the following day as it reported a mixed performance. Its adjusted revenue of $2.8 billion marginally declined from the year-ago quarter and slightly missed the consensus estimates, largely due to increased regional competition. Nonetheless, its net income per share of $0.05 considerably improved from a loss of $0.34 per share in the year-ago quarter and handily surpassed the forecasted figure. Strong growth in its digital segment’s profit played a key role in supporting overall profitability.
Wall Street analysts are highly optimistic about CZR’s stock, with a "Strong Buy" rating overall. Among 14 analysts covering the stock, 11 recommend "Strong Buy," and three suggest “Hold.” The mean price target for CZR is $45.36, which indicates an 80.9% potential upside from the current levels.
