Caesars Entertainment Reports Q3 Loss, Misses Revenue Estimates

Caesars Entertainment, Inc. CZR reported tepid third-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate and declining year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.The quarterly results reflect soft contributions from the Regional segment due to the adverse impact of new competition, construction disruption and difficult year-over-year comparisons. This, alongside tepid revenue contributions from the Managed and Branded and Las Vegas segments, added to the downtrend.The headwinds were offset to some extent by growth in top-line contributions from the Caesars Digital segment.CZR’s Earnings & Revenue DiscussionCaesars Entertainment reported an adjusted loss per share of 4 cents, which missed the Zacks Consensus Estimate of earnings per share (EPS) of 21 cents by 119.1%. In the prior-year quarter, the company reported an adjusted EPS of 34 cents.Caesars Entertainment, Inc. Price, Consensus and EPS Surprise  Caesars Entertainment, Inc. price-consensus-eps-surprise-chart | Caesars Entertainment, Inc. QuoteNet revenues of $2.87 billion also lagged the consensus mark of $2.91 billion by 1.3%. In the prior-year quarter, the company generated net revenues of $2.99 billion.Segmental Performance of Caesars EntertainmentLas Vegas: Net revenues in this segment totaled $1.06 billion, down 1.3% from $1.12 billion reported in the year-ago quarter. The segment was hurt due to a decline in casino revenues due to the decrease in gaming volume associated with the divestiture of Rio at the end of the third quarter of 2023 coupled with lower table games hold.The segment’s adjusted EBITDA was $472 million, down 2.1% from $482 million in the prior year quarter.Regional: This segment’s quarterly net revenues were $1.45 billion, down 7.6% year over year. The segment experienced competition in new markets. It was hurt by competition associated with new casino resorts opening in some of CZR’s regional markets, construction disruption from renovation projects at few of its properties and inclement weather in several property locations during the first quarter of 2024.The segment’s adjusted EBITDA reached $498 million, down from $575 million in the prior-year quarter.Caesars Digital: This segment’s net revenues were $303 million, up 40.9% year over year from $215 million. The segment benefited from a significant increase in iGaming handle along with improved  and higher hold in sports betting.The segment’s adjusted EBITDA totaled $52 million, up from $2 million in the year-ago quarter.Managed and Branded: Net revenues in this segment totaled $68 million, down 30.6% from $98 million in the prior-year quarter. The segment’s adjusted EBITDA was $19 million, down from $20 million in the prior-year quarter.Corporate and Other: The segment’s net revenues were $(5) million compared with $(4) million in the prior-year period. This segment’s adjusted EBITDA totaled $(40) million compared with $(36) million in the year-ago quarter.Balance Sheet of CZRAs of Sept. 30, 2024, Caesars Entertainment’s cash and cash equivalents were $802 million, down from $1.01 billion as of Dec. 31, 2023.Net debt as of the end of the third quarter was $11.9 billion, up from $11.43 billion as of 2023 end.CZR’s Zacks Rank & Recent Consumer Discretionary ReleasesCaesars Entertainment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here.Mohawk Industries, Inc. MHK reported strong third-quarter 2024 results (ended Sept. 30). Its earnings surpassed the Zacks Consensus Estimate and improved from the prior year despite pricing pressures and a negative mix.On the other hand, net sales declined on a year-over-year basis but marginally beat the consensus mark. Mohawk noted slower-than-anticipated market conditions across the regions due to high interest rates, lingering inflation and lower consumer confidence. Commercial channels have also lost some momentum yet outperformed residential. Nonetheless, it expects recent interest rate cuts in the United States, Europe and Latin America to strengthen housing markets and increase flooring sales next year.Royal Caribbean Cruises Ltd. RCL posted impressive third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.The company exceeded its guidance, driven by stronger pricing on close-in demand, continued growth in onboard revenues and reduced costs due to timing factors. It has raised its outlook for 2024 and reported elevated demand patterns heading into 2025.Mattel, Inc. MAT reported impressive third-quarter 2024 results, wherein adjusted earnings and net sales topped the Zacks Consensus Estimate. The top line surpassed the consensus estimate after missing it for three consecutive quarters. On a year-over-year basis, net sales declined while adjusted earnings grew.The company’s quarterly results benefited notably from its Optimizing for Profitable Growth program, along with the focus on its multi-year strategy to expand its IP-driven toy business and entertainment offering. Although the top line was adversely impacted by reduced sales from both the reportable segments, the bottom line showed resilience through operational efficiencies.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Mattel, Inc. (MAT): Free Stock Analysis Report Mohawk Industries, Inc. (MHK): Free Stock Analysis Report Caesars Entertainment, Inc. (CZR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks