Caesars Entertainment Rated F Amid Weak Earnings Momentum
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 19 hours ago
0mins
Should l Buy CZR?
Source: seekingalpha
Caesars Entertainment Inc's stock has dropped 6.28% as it hits a 20-day low, reflecting broader market weakness with the Nasdaq-100 down 2.12% and the S&P 500 down 2.04%.
The company received an F rating for earnings momentum, indicating significant downward pressure on analyst expectations for future earnings. This poor rating aligns with the overall weak performance in the consumer sector, which has prompted investors to reassess their portfolios. The negative sentiment surrounding Caesars Entertainment could further impact its stock performance.
As the earnings season approaches, the weak ratings for Caesars and other consumer stocks may lead to increased volatility in the market. Investors are advised to monitor the situation closely as earnings reports are released.
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Analyst Views on CZR
Wall Street analysts forecast CZR stock price to rise
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 18.950
Low
22.00
Averages
29.83
High
39.00
Current: 18.950
Low
22.00
Averages
29.83
High
39.00
About CZR
Caesars Entertainment, Inc. is a casino-entertainment company and a diversified gaming and hospitality provider. The Company operates primarily under the Caesars, Harrah’s, Horseshoe, and Eldorado brand names. Its segments include Las Vegas, Regional, Caesars Digital, and Managed and Branded, in addition to Corporate and Other. It offers diversified gaming, entertainment and hospitality amenities, destinations, and a full suite of mobile and online gaming and sports betting experiences. The Company owns, leases or manages an aggregate of 53 domestic properties in 18 states. It also operates and conducts sports wagering across 32 jurisdictions in North America, 26 of which offer online sports betting, and operates iGaming in five jurisdictions in North America. It operates the Caesars Sportsbook app, the Caesars Racebook app, the Caesars Palace Online Casino app and the new Horseshoe Online Casino app. Its online casino games include slots, table games, live dealer and video poker.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Digital Segment Growth: The Digital segment achieved net revenue of $419 million and adjusted EBITDA of $85 million in Q4, with i-Casino net revenue growing by 28% and a 19% increase in monthly unique payers to 585,000, indicating successful digital transformation.
- Las Vegas Market Dynamics: Despite a 6% decline in Q4 EBITDA, Las Vegas occupancy reached 92%, and new luxury accommodations along with CapEx projects enhanced guest experience, which is expected to drive future revenue growth.
- Positive Future Outlook: Management anticipates benefits in 2026 from reduced CapEx and interest expenses, with the digital business projected to achieve 20% top-line growth and 50% EBITDA flow-through, demonstrating confidence in future performance.
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- Revenue Growth: The quarterly revenue reached $2.92 billion, surpassing the market expectation of $2.89 billion and increasing from $2.8 billion in the same period last year, reflecting ongoing improvements in revenue generation.
- Adjusted EBITDA Increase: Same-store adjusted EBITDA was $901 million, up from $882 million in the prior year, demonstrating enhanced operational efficiency and profitability.
- Digital Business Innovation: Caesars Digital achieved a record adjusted EBITDA of $85 million, significantly up from $20 million in the comparable prior-year period, indicating substantial progress in the company's digital transformation efforts.
See More
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- Slight Revenue Growth: The company achieved Q4 revenue of $2.9 billion, a 3.6% year-over-year increase, beating market expectations by $20 million, suggesting steady revenue growth despite losses.
- Widening Net Loss: The net loss for Q4 was $250 million, a significant drop from a net income of $11 million in the prior year, primarily driven by over $350 million in asset sale gains last year, reflecting substantial volatility in profitability.
- Strong Digital Performance: Caesars Digital's adjusted EBITDA reached $85 million, a significant increase from $20 million in the prior year, highlighting the growth potential of the digital segment, which may support future profitability recovery.
See More
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- Ticket Sales Strategy: Presale tickets will be available starting February 18, 2026, with Citi cardholders and Caesars Rewards members receiving priority access, a strategy aimed at enhancing customer loyalty and ensuring rapid sellouts of the shows.
- Band History and Achievements: Since its formation in 1965, Scorpions have sold over 110 million albums worldwide, achieving global acclaim with hits like
See More
