Caesars Entertainment Inc reports results for the quarter ended September 30 - Earnings Summary

What happened

Caesars Entertainment Inc reported a quarterly adjusted loss of 61 cents per share for the quarter ended September 30, compared with a loss of 27 cents a year earlier. Revenue rose 2.5% to $2.94 billion, while analysts expected $2.96 billion.

Confirmed

Global impact / market context

The loss was far larger than the 11 cents per share analysts expected, and revenue fell just short of forecasts. That gap can pressure the share price because investors price in expected profit, and weaker results may reduce cash available for debt payments and casino upgrades.

Analyst inference

Analysts have cut earnings estimates sharply over three months, and six did so in the last 30 days. The average rating is hold, and the $31.00 median price target sits about 6.5% above the last close of $28.99, suggesting limited expected upside.

Analyst inference

What to watch

1. Analysts currently rate the shares a hold, with one buy, 15 holds and no sells, while the casinos and gaming peer group averages a buy rating, which shows relative caution on Caesars. Confirmed
2. Watch whether more analysts cut earnings estimates in coming weeks, since six already did in the last 30 days; further cuts could lower the $31.00 median price target. Proposed
3. Watch casino visitor spending and hotel demand next quarter, because revenue missed forecasts; weaker demand could squeeze profit per sale and slow debt reduction from the $123 million quarterly loss. Analyst inference

Evidence

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