Caesars Entertainment (CZR) Q2 Earnings Top Estimates, Rise Y/Y
Caesars Entertainment, Inc. CZR reported second-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Moreover, the top and the bottom line increased on a year-over-year basis. Notably, the company benefitted from solid contributions from regional and Las Vegas markets. Following the results, shares of the company moved up 1.9% during after-hours trading session on Aug 3.
During the second quarter, the company closed the William Hill acquisition. It also announced rebranding of its sports betting operations. To this end, the company launched a new segment — Caesars Digital. This involves operations with respect to sports betting, iGaming and poker.
Earnings & Revenues Discussion
In the quarter under review, adjusted earnings per share came in at 48 cents, which surpassed the Zacks Consensus Estimate of 26 cents. In the prior-year quarter, the company had reported adjusted loss of $1.25 per share.
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 came in at $2,502 million, beating the Zacks Consensus Estimate of $2,288 million. In the prior-year quarter, the company reported net revenues of $127 million.
During the second quarter, net revenues from Las Vegas segment came in at $855 million. The segment’s adjusted EBITDA came in at $423 million.
Coming to Regional segment, net revenues during the quarter came in at $1,490 million, compared with $114 million reported in the year-ago quarter. The segment’s adjusted EBITDA came in at $602 million against $(8) million reported in the prior-year quarter.
Net revenues from Caesars Digital segment in the second quarter came in at $86 million compared with $11 million in the prior-year quarter. The segment’s adjusted EBITDA came in at $(5) million against $5 million reported in the year-ago quarter.
In the Managed and International segment, net revenues during the second quarter came in at $66 million. The segment’s adjusted EBITDA came in at $26 million.
As of Jun 30, 2021, the company’s cash and cash equivalents came in at $ 1,128 million compared with $1,776 million as on Dec 31, 2020.
Net debt as of Jun 30, 2021, stood at $13,545 million compared with $13,247 million as of Dec 31, 2020.
On the development front, the company is working on its new hotel tower and property upgrades in New Orleans as well as remodeling the Caesars Palace entrance in Las Vegas. In Indiana, casino expansion at Indiana Grand is underway, with anticipated completions by January 2022. Also, the company stated that it is progressing with the construction of its new land-based facility in Lake Charles, the completion of which is estimated by the second half of 2022.
Zacks Rank & Other Key Picks
Caesars Entertainment currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Other better-ranked stocks in the Zacks Consumer Discretionary space include Golden Entertainment, Inc. GDEN, Vista Outdoor Inc. VSTO and Boyd Gaming Corporation BYD, each sporting a Zacks Rank #1.
Golden Entertainment’s 2021 earnings are expected to surge 128%.
Vista Outdoor has a trailing four-quarter earnings surprise of 70.1%, on average.
Boyd Gaming has three-five-year earnings per share growth rate of 38.8%.
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