Caesars Entertainment (NASDAQ:CZR) Posts Earnings Results, Misses Expectations By $0.35 EPS

Key Points

• Caesars Entertainment reported a quarterly loss of $0.30 per share, missing analysts’ $0.05 EPS expectation by $0.35, while revenue of $2.99 billion slightly exceeded the $2.98 billion consensus.
• Shares edged down 0.1% to $29.95 after the results. The company reported a negative net margin of 4.19%, negative return on equity of 7.88%, and substantial leverage with a 3.25 debt-to-equity ratio.
• Analysts maintain a broadly cautious outlook: the stock has a consensus “Hold” rating and an average price target of $31.00, while insiders sold approximately 293,463 shares worth $8.6 million over the past quarter.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) announced its earnings results on Tuesday. The company reported ($0.30) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.35), FiscalAI reports. The business had revenue of $2.99 billion for the quarter, compared to analysts' expectations of $2.98 billion. Caesars Entertainment had a negative net margin of 4.19% and a negative return on equity of 7.88%.

Caesars Entertainment Trading Down 0.1%

Shares of NASDAQ:CZR traded down $0.02 during trading hours on Tuesday, hitting $29.95. 2,063,655 shares of the company's stock traded hands, compared to its average volume of 6,036,671. The firm has a market capitalization of $6.10 billion, a P/E ratio of -12.64 and a beta of 1.76. The business has a fifty day moving average price of $29.48 and a 200-day moving average price of $26.54. Caesars Entertainment has a 1 year low of $17.86 and a 1 year high of $30.88. The company has a debt-to-equity ratio of 3.25, a current ratio of 0.85 and a quick ratio of 0.83.

Insider Activity at Caesars Entertainment

In related news, insider Edmund L. Quatmann, Jr. sold 81,566 shares of the firm's stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $29.35, for a total transaction of $2,393,962.10. Following the completion of the sale, the insider directly owned 18,263 shares of the company's stock, valued at approximately $536,019.05. This trade represents a 81.71% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Michael E. Pegram sold 16,897 shares of the business's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $29.46, for a total value of $497,785.62. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 293,463 shares of company stock worth $8,609,241. Company insiders own 1.18% of the company's stock.

Institutional Investors Weigh In On Caesars Entertainment

Large investors have recently added to or reduced their stakes in the stock. Cinctive Capital Management LP purchased a new stake in shares of Caesars Entertainment in the fourth quarter valued at approximately $1,005,000. Vanguard Personalized Indexing Management LLC increased its holdings in Caesars Entertainment by 36.6% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 38,368 shares of the company's stock worth $897,000 after purchasing an additional 10,270 shares during the period. Occudo Quantitative Strategies LP increased its holdings in Caesars Entertainment by 17.9% during the 4th quarter. Occudo Quantitative Strategies LP now owns 30,443 shares of the company's stock worth $712,000 after purchasing an additional 4,613 shares during the period. Guggenheim Capital LLC raised its position in Caesars Entertainment by 85.2% during the 4th quarter. Guggenheim Capital LLC now owns 26,046 shares of the company's stock valued at $609,000 after purchasing an additional 11,986 shares in the last quarter. Finally, Captrust Financial Advisors lifted its holdings in shares of Caesars Entertainment by 11.2% in the 4th quarter. Captrust Financial Advisors now owns 23,349 shares of the company's stock worth $546,000 after buying an additional 2,354 shares during the period. 91.79% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

CZR has been the topic of several analyst reports. Citigroup boosted their price objective on Caesars Entertainment from $23.00 to $30.00 and gave the stock a "neutral" rating in a research note on Thursday, April 16th. Barclays reiterated an "equal weight" rating and issued a $31.00 target price (down from $35.00) on shares of Caesars Entertainment in a report on Thursday, July 9th. Weiss Ratings restated a "sell (d-)" rating on shares of Caesars Entertainment in a report on Monday, May 18th. Citizens Jmp raised their price target on Caesars Entertainment from $34.00 to $35.00 and gave the stock a "market outperform" rating in a research report on Wednesday, April 29th. Finally, Zacks Research raised shares of Caesars Entertainment from a "strong sell" rating to a "hold" rating in a research note on Thursday, July 16th. Three research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $31.00.

About Caesars Entertainment

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.

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