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Caesars (CZR) Q1 Loss Narrower Than Expected, Revenues Up Y/Y

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Caesars Entertainment, Inc. CZR reported unimpressive results in first-quarter 2022. The company generated wider loss on a year-over-year basis in the quarter. Revenues missed the Zacks Consensus Estimate but increased from the year-ago quarter’s levels.

Following the results, shares of the company moved up 2% during the after-hours trading session on May 3.

Tom Reeg, CEO of Caesars Entertainment, stated, "Our first quarter operating results reflect sequential improvement each month of the quarter in revenues and EBITDA. Our Las Vegas segment posted an all-time first quarter EBITDA record and our regional segment delivered solid EBITDA and margin growth. Consumer trends remain healthy and we are optimistic for the balance of the year."

Earnings & Revenue Discussion

In the quarter under review, the company posted an adjusted loss per share (EPS) of $2.11, narrower than the Zacks Consensus Estimate of a loss of $2.15. In the prior-year quarter, the company had reported a loss of $2.01 per share.

Caesars Entertainment, Inc. Price, Consensus and EPS Surprise

Caesars Entertainment, Inc. Price, Consensus and EPS Surprise
Caesars Entertainment, Inc. Price, Consensus and EPS Surprise

Caesars Entertainment, Inc. price-consensus-eps-surprise-chart | Caesars Entertainment, Inc. Quote

Net revenues during the quarter were $2,292 million, which lagged the Zacks Consensus Estimate of $2,311 million by 0.8% but increased 27.9% from the prior-year quarter’s $1,792 million.

Same-store adjusted EBITDA of $296 million was significantly down from $521 million reported in the prior-year quarter. Same-store adjusted EBITDA, excluding Caesars’ Digital segment, was $850 million during the quarter compared with $530 million in the year-ago quarter.

Segmental Performance

During the quarter, net revenues from the Las Vegas segment were $914 million compared with $497 million reported in the year-ago quarter. The segment’s adjusted EBITDA was $400 million compared with $162 million in the prior-year quarter.

Coming to the Regional segment, net revenues during the quarter were $1,363 million compared with $1,191 million in the year-ago quarter. The segment’s adjusted EBITDA totaled $459 million compared with $393 million in the prior-year quarter.

Net revenues from the Caesars Digital segment in the quarter were negative $53 million versus $39 million in the prior-year quarter. The segment’s adjusted EBITDA came in at a negative $554 million compared with a negative $2 million reported in the year-ago quarter.

In the Managed and Branded segment, net revenues during the quarter were $66 million compared with $61 million in the prior-year quarter. The segment’s adjusted EBITDA amounted to $20 million compared with $21 million in the prior-year quarter.

Balance Sheet

As of Mar 31, 2022, the company’s cash and cash equivalents were $814 million compared with $1,070 million as of Dec 31, 2021.

Net debt as of Mar 31, 2022, stood at $13,492 million compared with $13,253 million as of Dec 31, 2021.

Zacks Rank

Caesars Entertainment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some Recent Consumer Discretionary Releases

Mohawk Industries, Inc. MHK reported impressive results for first-quarter 2022. Earnings and sales surpassed their respective Zacks Consensus Estimate and improved on a year-over-year basis.

The uptrend in MHK’s first-quarter results was backed by record sales, higher pricing, growth in ceramic businesses, improving commercial sector and benefits from small buyouts.

Strategic Education, Inc. or SEI STRA reported lackluster results in first-quarter 2022.

Earnings and revenues missed the Zacks Consensus Estimate and declined on a year-over-year basis due to lower contributions from all three segments of STRA.

MGM Resorts International MGM reported first-quarter 2022 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

While the bottom line surpassed the consensus estimates for the eighth straight quarter, the top line beat the same for the sixth consecutive quarter. MGM’s earnings and revenues improved on a year-over-year basis.


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