Caesars Entertainment (NASDAQ:CZR) Releases Earnings Results, Misses Estimates By $0.29 EPS

Key Points

• Caesars reported Q1 EPS of ($0.48), missing estimates by $0.29 while revenue of $2.87 billion modestly beat consensus, and the stock traded down about 2.6% on the print.
• The company delivered a record digital quarter (digital net revenue $374M; adjusted EBITDA $69M) and guided digital can grow roughly 20% top‑line with about 50% flow‑through to EBITDA.
• Management expects strong free cash flow in 2026 and plans a balanced use of cash for debt paydown and share repurchases (Q1 repurchases paused), targeting lease‑adjusted leverage below 5x, though it cautioned about short‑term volatility from hold and leisure demand variability.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported ($0.48) earnings per share for the quarter, missing the consensus estimate of ($0.19) by ($0.29), Zacks reports. The business had revenue of $2.87 billion during the quarter, compared to the consensus estimate of $2.84 billion. Caesars Entertainment had a negative return on equity of 7.97% and a negative net margin of 4.37%.The company's revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.54) EPS.

Here are the key takeaways from Caesars Entertainment's conference call:

• Caesars reported Q1 2026 consolidated net revenue of $2.9 billion (+3% YoY) and adjusted EBITDA of $887 million, led by a record digital quarter (digital net revenue $374M; adjusted EBITDA $69M) with expanding margins and management guidance that digital can reach ~20% top-line growth with ~50% flow-through to EBITDA.
• Las Vegas showed sequential improvement—95.3% occupancy and 1% ADR growth in Q1 (Las Vegas adjusted EBITDA $426M)—and Caesars is investing in property upgrades and openings (OMNIA Dayclub, Augustus Tower remodel, Category 10) to support further recovery.
• Regional net revenue rose 3% to $1.4 billion while adjusted EBITDA declined $5 million year‑over‑year (impacted by last year's Super Bowl in New Orleans); Caesars closed the Caesars Windsor acquisition and expects tailwinds from completed Tahoe renovations and targeted marketing reinvestment.
• Management expects strong free cash flow in 2026 driven by operating momentum, lower cash interest and reduced CapEx, and plans a balanced use of cash between debt paydown and share repurchases (first‑quarter repurchases paused); target leverage is sub‑5x lease‑adjusted.
• Company warned of ongoing quarter‑to‑quarter volatility from timing and hold effects (April was softer than expected due to hold) and noted leisure demand in Vegas remains uneven despite improvement, creating short‑term earnings sensitivity.

Caesars Entertainment Trading Down 2.6%

Shares of CZR traded down $0.72 during midday trading on Tuesday, hitting $27.31. The stock had a trading volume of 3,675,576 shares, compared to its average volume of 5,666,119. Caesars Entertainment has a 1 year low of $17.86 and a 1 year high of $31.58. The firm has a market cap of $5.56 billion, a PE ratio of -11.24 and a beta of 1.87. The company has a debt-to-equity ratio of 3.17, a current ratio of 0.80 and a quick ratio of 0.78. The stock's 50 day moving average is $25.92 and its 200 day moving average is $23.52.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Stifel Nicolaus reduced their target price on shares of Caesars Entertainment from $39.00 to $36.00 and set a "buy" rating on the stock in a report on Wednesday, February 18th. Truist Financial upped their target price on shares of Caesars Entertainment from $29.00 to $32.00 and gave the company a "buy" rating in a research report on Tuesday, April 21st. Citigroup increased their price target on shares of Caesars Entertainment from $23.00 to $30.00 and gave the company a "neutral" rating in a report on Thursday, April 16th. TD Cowen reiterated a "buy" rating on shares of Caesars Entertainment in a research report on Wednesday, January 21st. Finally, Deutsche Bank Aktiengesellschaft decreased their price objective on Caesars Entertainment from $36.00 to $35.00 and set a "buy" rating on the stock in a research report on Wednesday, February 18th. Nine investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $32.93.

Hedge Funds Weigh In On Caesars Entertainment

Several hedge funds have recently added to or reduced their stakes in the company. State Street Corp raised its position in Caesars Entertainment by 0.8% in the 2nd quarter. State Street Corp now owns 7,569,822 shares of the company's stock worth $214,907,000 after purchasing an additional 61,065 shares during the period. Morgan Stanley boosted its position in shares of Caesars Entertainment by 121.0% during the fourth quarter. Morgan Stanley now owns 7,141,899 shares of the company's stock valued at $167,049,000 after buying an additional 3,910,430 shares during the period. Charles Schwab Investment Management Inc. grew its stake in shares of Caesars Entertainment by 2.8% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,522,248 shares of the company's stock valued at $58,995,000 after buying an additional 68,853 shares during the last quarter. Nomura Holdings Inc. grew its stake in shares of Caesars Entertainment by 33.8% during the third quarter. Nomura Holdings Inc. now owns 2,392,084 shares of the company's stock valued at $64,646,000 after buying an additional 604,579 shares during the last quarter. Finally, Alyeska Investment Group L.P. raised its holdings in shares of Caesars Entertainment by 315.1% in the third quarter. Alyeska Investment Group L.P. now owns 1,946,099 shares of the company's stock worth $52,593,000 after buying an additional 1,477,284 shares during the period. 91.79% of the stock is currently owned by institutional investors.

Caesars Entertainment Company Profile

Caesars Entertainment Corporation is a leading integrated gaming and hospitality company headquartered in Las Vegas, Nevada. The company owns and operates a global portfolio of resorts, casinos, and entertainment venues designed to deliver comprehensive hospitality experiences. Its business activities span hotel accommodations, gaming operations, food and beverage services, live events, and convention services, with a focus on delivering luxury and entertainment to both leisure and business travelers.

The company traces its lineage to the founding of Harrah's by William F.