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Based in Reno, Nevada, Caesars Entertainment, Inc. (CZR) operates as a gaming and hospitality company. Valued at $7.20 billion by market cap, the company is one of the world’s most diversified casino-entertainment providers and has grown through the development of new resorts, expansions, and acquisitions. Its resorts operate primarily under the Caesars, Harrah’s, Horseshoe, and Eldorado brand names. It offers diversified gaming, entertainment, and hospitality amenities, one-of-a-kind destinations, and a full suite of mobile and online gaming and sports betting experiences. The leading casino entertainment company is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Tuesday, Jul. 30.
Ahead of the event, analysts expect CZR to report a profit of $0.14 per share on a diluted basis, down 82.9% from $0.82 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing on two other occasions.
For fiscal 2024, analysts expect CZR to report a loss per share of $0.13, down 114.1% from $0.92 in fiscal 2023.
CZR stock has significantly underperformed the S&P 500’s ($SPX) 18.2% gains over the past 52 weeks, with shares down 42.4% during this period. Similarly, it underperformed the S&P 500 Cons Disc Sector SPDR’s (XLY) 6.3% gains over the same time frame.
On Jul.15, CZR shares fell more than 1% after Susquehanna Financial downgraded the stock to Negative from Neutral with a target price of $33.
On Apr. 30, CZR shares fell more than 4% after reporting its Q1 results. Revenue fell 3.1% year over year to $2.74 billion, falling short of the consensus estimates of $2.83 billion. The company’s adjusted EBITDA of $853 million missed Wall Street forecasts of $916 million. Meanwhile, its loss per share was $0.73, widening from the prior year's loss of $0.63 per share and falling considerably shorter than the analyst expectations of a loss per share of $0.08.
Analysts’ consensus opinion on CZR stock is bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, 12 advise a “Strong Buy” rating, three recommend a “Hold” rating, and one gives a “Strong Sell.” The average analyst price target for CZR is $53, indicating a 59.4% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
