Caesars Entertainment (NASDAQ:CZR) Releases Quarterly Earnings Results, Misses Estimates By $0.49 EPS

Key Points

• Caesars Entertainment missed quarterly earnings expectations: EPS was a loss of $0.61 versus the expected loss of $0.12, while revenue reached $2.94 billion, slightly below the $2.96 billion consensus.
• Shares traded around $28.85, and the company reported a negative net margin of 3.99% and negative return on equity of 7.64%; its debt-to-equity ratio stood at 3.70.
• Analyst sentiment remains cautious: Caesars has a consensus “Hold” rating, with an average price target of $30.71, while insiders have sold more than 322,000 shares worth approximately $9.6 million over the past 90 days.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported ($0.61) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.49), FiscalAI reports. Caesars Entertainment had a negative net margin of 3.99% and a negative return on equity of 7.64%. The business had revenue of $2.94 billion for the quarter, compared to the consensus estimate of $2.96 billion.

Caesars Entertainment Price Performance

Shares of NASDAQ CZR traded down $0.14 during midday trading on Tuesday, reaching $28.85. The stock had a trading volume of 6,267,768 shares, compared to its average volume of 5,668,972. The stock has a 50-day moving average of $29.53 and a 200-day moving average of $27.53. The company has a debt-to-equity ratio of 3.70, a quick ratio of 0.83 and a current ratio of 0.85. The company has a market capitalization of $5.88 billion, a price-to-earnings ratio of -12.65 and a beta of 1.85. Caesars Entertainment has a 12-month low of $17.86 and a 12-month high of $30.88.

Insider Activity

In related news, Director David Tomick sold 7,142 shares of Caesars Entertainment stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $29.71, for a total transaction of $212,188.82. Following the transaction, the director owned 17,769 shares in the company, valued at approximately $527,916.99. The trade was a 28.67% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Bret Yunker sold 208,134 shares of the company's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $29.62, for a total transaction of $6,164,929.08. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 322,682 shares of company stock valued at $9,565,403 over the last 90 days. Company insiders own 1.18% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Susquehanna reaffirmed a "neutral" rating on shares of Caesars Entertainment in a report on Monday. Weiss Ratings reissued a "sell (d-)" rating on shares of Caesars Entertainment in a report on Thursday, August 13th. TD Cowen cut Caesars Entertainment from a "buy" rating to a "hold" rating and set a $31.00 price target for the company. in a research report on Wednesday, July 29th. Capital One Financial downgraded Caesars Entertainment from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 23rd. Finally, Barclays reaffirmed an "equal weight" rating and issued a $31.00 price objective (down from $35.00) on shares of Caesars Entertainment in a research note on Thursday, July 9th. Two analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Caesars Entertainment currently has a consensus rating of "Hold" and an average price target of $30.71.

Caesars Entertainment Company Profile

Caesars Entertainment, Inc is a gaming, hospitality and entertainment company that operates casino resorts and related businesses primarily in the United States. Its properties offer casino gaming, hotel accommodations, restaurants, bars, entertainment venues, meeting and convention facilities, and other leisure amenities.

The company operates well-known destinations in Las Vegas, including Caesars Palace, Paris Las Vegas, Planet Hollywood Resort & Casino, and The Cromwell, as well as regional casinos and resorts across several U.S.

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