CZR Earnings Prediction
The chart below shows how CZR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CZR sees a +2.12% change in stock price 10 days leading up to the earnings, and a -0.04% change 10 days following the report. On the earnings day itself, the stock moves by -1.49%. This data can give you a slight idea of what to expect for the next quarter's release.
CZR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.80B
-0.92%
-2.61%
Gross Margin
35.19%
-6.03%
-9.47%
Operating Margin
18.15%
-11.29%
-19.87%
Net Margin
0.86%
143.43%
177.42%
EPS
0.05
115.15%
-225.00%
No Data Available
CZR Earnings Analysis
Caesars Entertainment Inc Corporation (CZR.O) Earnings Conference Call
Positive
Regional Performance Improvement: Regional performance improved with the opening of Caesars New Orleans and Caesars Virginia, contributing positively to Q4 results.
Las Vegas Occupancy Resilience: Las Vegas showed resilience with flat year-over-year results despite tough comparisons, and occupancy rates remained high at 96%.
Consolidated Financial Performance: The company achieved consolidated same store results of $11.2 billion in net revenues and $3.7 billion in EBITDAR for the full year, with an EBITDAR margin of 33.2%.
Las Vegas Property Returns: Investments in Las Vegas properties yielded strong returns, with cash ADRs and gross gaming revenues showing significant growth.
Digital Segment Performance: The Digital segment set all-time records in net revenue, EBITDA, and cash flow, with a 20% year-over-year increase in total net revenue.
iGaming Revenue Surge: iGaming experienced exceptional growth, with a 65% increase in net revenue during Q4, driven by improved product offerings and new app launches.
Debt Repayment and Share Buyback: The company successfully repaid $500 million in debt and repurchased shares, demonstrating strong financial management and commitment to shareholder value.
Positive 2025 Outlook: The outlook for 2025 is positive, with expectations of increased free cash flow and continued growth in both brick-and-mortar and digital segments.
Negative
Regional Revenue and EBITDAR Decline: Regional segment net revenues declined 1% and adjusted EBITDAR declined 5% in Q4, indicating ongoing competitive pressures in certain markets.
Regional Performance Challenges: Despite the opening of new facilities in New Orleans and Virginia, the regional segment's performance was still down year-over-year, suggesting challenges in market recovery.
Las Vegas Revenue Decline: In Las Vegas, same store net revenues were down 1% in Q4, which is concerning given the previous year's strong performance during the F1 race.
Digital Segment Performance Impact: The digital segment experienced customer-friendly outcomes in October and December, which negatively impacted overall revenue and EBITDA figures for the quarter.
Labor Cost Increase Impact: The company faced a $50 million increase in labor costs in Las Vegas, which could pressure margins moving forward.
Tax Impact on Digital Growth: There were concerns about the impact of potential tax increases on the digital segment, which could affect future profitability and growth targets.
Competitive Market Challenges: The company acknowledged that competitive threats in regional markets are still present, which could hinder growth despite some positive trends.
Sports Betting Volume Decline: The overall volume in sports betting declined slightly due to limited activity and reinvestment in unprofitable customer segments, indicating a need for strategic adjustments.
CZR FAQs
How does CZR typically perform around its earnings report dates?
Is Caesars Entertainment Inc (CZR) Q4 2024 Earnings Call Summary positive or negative?
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CZR Earning Call Sentiment
Earnings call transcript: Caesars Q4 2024 beats EPS forecast despite revenue miss
CZR.O
-5.27%Positive
The earnings call presents mixed signals. While the digital segment shows strong growth and strategic asset sales are used for debt reduction, the flat revenues and EBITDAR, along with regional declines, create a neutral outlook. The share buyback and debt repayment are positives, but management's vague responses in the Q&A, particularly regarding digital monetization and tax impacts, add uncertainty. Without clear guidance or new partnerships, the market reaction is likely to be muted, resulting in a neutral sentiment for the stock price over the next two weeks.
